M/S THE SANGRUR CENTRAL CO-OP BANK LTD.,SANGRUR vs. DCIT, CIRCLE, SANGRUR

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order dated 28.04.2017 of the Commissioner of Income Tax (Appeals), Patiala [hereinafter referred to as ‘CIT(A)’].

ITA No. 1079-c-17 M/s The Sangrur Central Coop Bank Ltd., Sangrur 2 there with the deductor before credit of interest. Hence, there was no TDS liability.

ground No.1 are that during the assessment proceedings the Assessing

Officer noticed that assessee had paid interest payments to various

persons, however, a perusal of the Form Nos. 15G and 15H furnished

by those persons revealed that PAN numbers of those persons were not

mentioned on it. The Assessing Officer observed that as per the

provisions of section 206AA, since the recipients of interest income

had not furnished their PAN numbers, therefore, the assessee was

required to deduct the tax at a higher rate. The Assessing Officer,

accordingly held that the provisions of section 40(a)(ia) of the Income

Tax Act, 1961 (in short 'the Act') were attracted and he accordingly

ITA No. 1079-c-17 M/s The Sangrur Central Coop Bank Ltd., Sangrur 3 made the addition of expenditure of Rs. 9,13,197/- u/s 40(a)(ia) of the

Act.

The assessee unsuccessfully contested the issue before the Ld.

CIT(A).

though some of the recipients did not mention their PAN numbers,

however, subsequently the assessee obtained their PAN numbers and

supplied to the Assessing Officer, but the Assessing Officer failed to

take note of this aspect and that in certain cases the PAN numbers were

already with the assessee bank and, hence, the same was accordingly

supplied to the Assessing Officer. That since the PAN numbers were

already with the assessee bank, hence, it becomes immaterial if

recipients have not mentioned the same in the form Nos. 15G/15H. That

the PAN numbers of those persons were duly supplied to the Assessing

Officer.

Assessing Officer. We, accordingly, restore the ground No.1 to the

Assessing Officer to verify the contention of the assessee whether the

PAN number were subsequently supplied during the assessment

proceedings and if found so, not to make disallowance on this issue.

ITA No. 1079-c-17 M/s The Sangrur Central Coop Bank Ltd., Sangrur 4 6. Ground No.2: Vide ground No. 2, the assessee has agitated the

conformation of addition of Rs. 5,63,437/- into the income of the

assessee on account of non-deduction of Tax at source (TDS).

The Ld. Counsel for the assessee, at the outset, has pleaded that

the tax was deducted in the subsequent years and deposited accordingly,

he, therefore, has submitted that the issue be decided in the light of the

proviso of section 40(a)(ia) of the Act. The proviso to section 40(a)(ia)

of the Act reads as under:- “Provided that where in respect of any such sum, tax has been deducted in any subsequent year or, has been deducted in the previous year but paid in any subsequent year after the expiry of the time prescribed under sub section (1) of section 200, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.”

Officer to verify the above submissions of the assessee and decide this

issue in accordance with law.

CIT(A) in confirming the addition of Rs. 2,43,453/- made by the

Assessing Officer. The Ld. Counsel for the assessee has submitted that

the Assessing Officer did not give proper opportunity to the assessee to

furnish form No. 15G/15H to the Assessing Officer despite the fact that

ITA No. 1079-c-17 M/s The Sangrur Central Coop Bank Ltd., Sangrur 5 the same were readily available with the assessee. That during the first

appellate proceedings, the additional evidence were furnished before the

Ld. CIT(A) which were forwarded to the Assessing Officer and it was

found that the TDS was made on the payment of interest of Rs.

1,76,907/-. The Ld. CIT(A) accordingly deleted the addition of Rs.

1,76,907/- out of the total addition of Rs. 4,20,360/- made by the

Assessing Officer.

The Ld. Counsel in this respect has submitted that the

confirmation of the remaining addition by the CIT(A) was wrong as the

remaining recipients had duly furnished form No. 15GH / 15H and the

same were readily available with the assessee. That the additional

evidences furnished by the assessee have not been properly appreciated

by the lower authorities. That the matter be restored to the file of the

Assessing Officer so as to give proper opportunity to the assessee to

furnish the evidences and for proper and thorough verification of such

evidences by the Assessing Officer.

lower authorities.

examination by the Assessing Officer of the evidences furnished by the

assessee, hence, we restore the matter on this issue to the file of the

Assessing Officer with a direction to admit the additional evidences, if

ITA No. 1079-c-17 M/s The Sangrur Central Coop Bank Ltd., Sangrur 6 any, furnished by the assessee on this issue, examine and verify the

same and decide this issue afresh in accordance with law.

The appeal of the assessee is treated as allowed for statistical

purposes.

Order pronounced in the Open Court on 21.10.2019.

Sd/- Sd/- (संजय गग� / SANJAY GARG) (एन. के. सैनी / N.K. SAINI) उपा�य� /Vice President �या�यकसद�य/ Judicial Member Dated : 21.10.2019

आदेशक���त�ल�पअ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकरआयु�त/ CIT 4. आयकरआयु�त (अपील)/ The CIT(A) 5. �वभागीय��त�न�ध, आयकरअपील�यआ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड�फाईल/ Guard File

आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar