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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)’].
The assessee in this appeal has taken following grounds of appeal:- 1. That the learned CIT(A) has erred in confirming the addition of Rs.913197/- considering form 15G/15H as invalid and there was liability to deduct TDS was there, when PAN No. was already
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.
That the learned CIT (A) has erred in confirming the addition of Rs.563437/-considering TDS liability was there, as form 15G/15H were received late, however, the depositor were agriculturist and the deductor was aware of the fact that the income of the depositor is not liable to be tax, hence, TDS was not deducted and forms were also received before the filling date. Hence, there was no liability to deduct TDS.
That the learned CIT (A) has erred in confirming the addition of Rs.243453/- when form 15G/15H were available and due to no opportunity provided by the AO, the same could not be produced before AO. Hence, there was no liability to deduct TDS.
Ground No.1: The brief facts relating to the issue raised vide
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).
Before us, the Ld. Counsel for the assessee has submitted that
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.
This plea of the assessee requires factual examination by the
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.”
We accordingly restore this issue to the file of the Assessing
Officer to verify the above submissions of the assessee and decide this
issue in accordance with law.
Ground No;3: Ground No.3 is in respect of the action of the Ld.
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.
The Ld. DR, on the other hand, has relied on the findings of the
lower authorities.
Considering the rival submissions, since the matter needs factual
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