PUNJAB NATIONAL BANK ,BHILWARA vs. ITO, TDS, AJMER

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE ‘B’ JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ fu/kZkj.k o"kZ@Assessment Year :2010-11 cuke Punjab National Bank, The ITO, Vs. Sanganeri Gate, Ramdwara, TDS, Ajmer Bhilwara LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: JDHP02236D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Written submission (None) jktLo dh vksj ls@ Revenue by : Karni Dan (JCIT) lquokbZ dh rkjh[k@ Date of Hearing : 07/08/2019 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 19/08/2019 vkns'k@ ORDER PER: VIKRAM SINGH YADAV, A.M.

This is an appeal filed by the assessee against the order of ld. CIT(A), Ajmer dated 05.04.2018 wherein the assessee has challenged the sustenance of order passed u/s 201/201(1A) of the Act for non-deduction of TDS amounting to Rs. 39,690/- and demand towards the interest amounting to Rs. 45,015/- raising total demand of Rs. 84,707/-.

“4.3 I have gone through the order, statement of facts, grounds of appeal and written submission carefully. It is seen that the AO has raised the demand u/s 201(1) and 201(1A) in respect interest paid by the appellant without deducting tax at source to following persons:

Punjab National Bank, Bhilwara Vs. ITO, Ajmer S.No. Name ofcustomer/ PAN of the Interest paid/ TDS made TDS not Shortfall client customer/ credited during on the made on client the F.Y. 2009- 10 (if above Rs. interest, if interest 1,60,000/-) due to any Form No. 15G/H 1 Shree Ganesh Utsav AAFTS0809Q Rs. 1,90,988/- Rs. 95/- 15G Rs. 19,004/- Praband and Sewa Samiti Shanta Devi Sharma CXJPS9738P Rs. 2,99,318/- Rs. 9,246/- 15G Rs. 20,686/- 2 3 Badhir Bal Kalyan AAATB2316G Rs. 4,32,122/- 0 15G Rs. 43,212/- Vikash Samiti Office Total Rs. 9,341/- Rs. 9,22,428/- Rs. 82,902/- There is no dispute about the fact 'that interest credited in the account of all the referred three persons was more than the threshold limit (Rs. 1,60,000/ Rs. 2,40,000 for A.Y. 2010-11) for filing return of income. Therefore, I am of the considered opinion that in view of the specific provisions of Section 197A r.w.s. 194A and Column No. 16/17 of Part 1 of Form No. 15G / 15H, the appellant was required to deduct tax at source at the time of payment/ credit of interest to the three persons referred in the order passed by the AO. As the appellant had failed to deduct the tax as required u/s 194A on the interest paid to these persons, therefore, the action of the AO treating the appellant as "assessee in default" u/s 201(1) in respect of non deduction / short deduction of tax of Rs. 39,690/- and interest of Rs. 45,015/- (in respect of interest on such short deduction / non deduction) u/s 201(1A), is held to be valid and in accordance with the provisions of law. Accordingly, the demand of Rs. 84,707/- cre,dited by the AO u/s 201(1) and 201(1A) is hereby confirmed.”

Punjab National Bank, Bhilwara Vs. ITO, Ajmer the return of income u/s 139 and they have taken such income from the assessee’s bank for computing its total income in its return of income and there will be nil tax liability since the said samiti is registered u/s 12A(a) of the Act. Further, support was drawn from the provision to section 201 introduced by Finance Act, 2012 w.e.f 01.07.2012 which reads as under:- “Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident- (i) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed”

“Since the assessee deductor has furnished the copy of ITR of the above deductee at S.No. 3 showing that the interest income received from the assessee dedcutor/Bank has been declared in the return of income for the A.Y 2010-11 which is verifiable, interest is hereby charged from the date of interest paid/credited to the date of furnishing the return by such deductee. 3

Punjab National Bank, Bhilwara Vs. ITO, Ajmer

Since the assessee deductor has not furnished the copy of ITR of the above deductee in respect of S. No. 1 & 2 showing that the interest income received from the assessee deductor/Bank has been declared in the return of income for the AY 2010-11, interest is hereby charged from the date of interest paid/credited to the date. The total TDS and interest liability of the default/deductor is worked out as under:-

Section/ Name of Payment Rate of Short fall Default in Period for Interest Total Nature of the amount TDS of TDS respect of interest u/s 201 Intererst payment recipient short fall (1A) @ & tax of TDS 1% liability Shree Rs. 10% Rs. Rs. 96 Rs. Rs. Ganesh 1,90,988/- 19,004/- 19,004 Months 18,244/- 37,248/- Utsav Praband and Sewa 194-A Samiti, Interest Shanta Rs. 10% Rs. Rs. 96 Rs. Rs. on FDRs Devi 2,99,318/- 20,686/- 20,686/- Months 19,859/- 40,545/- Sharma Badhir Bal Rs. 10% Rs. - 16 Rs. Rs. Kalyan 4,32,122/- 43,212/- Months 6,914/- 6,914/- Vikash Samiti Office Total Rs. Rs. Rs. 39,690/- 45,017/- 84,707/-

In the result, we confirm the order of ld. CIT(A) and the appeal filed by the assessee is dismissed.

Order pronounced in the Open Court on 19/08/2019.