CITY UNION BANK LTD,TRICHUR vs. ITO, THRISSUR

The issue in these appeals are in respect of demand created under Section 201(1) of the Income Tax Act, 1961 on account of failure on the part of the assessee to deduct tax under Section 194A of the Act.

None appeared on behalf of the assessee. Smt. J.M. Jamuna Devi, Sr. D.R. appeared on behalf of Revenue.

It was submitted by the assessee in its grounds that on account of Covid second wave during April and May, 2021 the employees of the assessee were compelled to work from home and consequently could not assist the Counsel in representing appeals before the learned CIT(A). It was the submission that if the assessee is given adequate opportunity the assessee would be able to substantiate their case. to 104/Coch/2021 2 City Union Bank Ltd.

The learned D.R. submitted that notices have been issue through e- mail and there was no response from the assessee. The learned D.R. vehemently supported the orders of the learned CIT(A).

A perusal of para4, page 14 of the order of the CIT(A) clearly shows that the assessee has been issued notices in April and May, 2021 and one notice for February, 2021. Admittedly this was a period when the Covid lockdown was present and most of the employees were on work from home. This being so, in the interest of justice we feel that the assessee must be granted adequate opportunity to substantiate its case and consequently the orders of the learned CIT(A) is set aside and the issues are restored to the file of the learned CIT(A) for readjudication after granting adequate opportunity of being heard to the assessee.

In the result, the appeals filed by the assessee are partly allowed for statistical purposes.