PUNJAB NATIONAL BANK,NEW SHIMLA vs. DCIT(TDS), PANCHKULA
1
IN THE INCOME TAX APPELLATE TRIBUNAL
‘B’ BENCH, CHANDIGARH
BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT
AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकरअपीलसं./ ITA No.397/CHANDI/2024
(िनधाŊरणवषŊ / Assessment Year: 2012-13)
Punjab
National
BankBramta
Bhawan,
Sector 1 Himachal Pradesh-
171009. बनाम/ Vs.
DCIT (TDS)
Sector 2,
Haryana.
̾थायीलेखासं./जीआइआरसं./TAN/GIR No. PTLPl-2970-G
(अपीलाथŎ/Appellant)
:
(ŮȑथŎ / Respondent)
अपीलाथŎकीओरसे/ Appellant by : Sh. Rakesh Kumar (CA) – Ld. AR
ŮȑथŎकीओरसे/Respondent by :
Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr.DR
सुनवाईकीतारीख/Date of Hearing
:
09-04-2025
घोषणाकीतारीख /Date of Pronouncement
:
21-04-2025
आदेश / O R D E R
Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Pune [CIT(A)] dated 15-02-2024 confirming certain demand raised by Ld. AO against the assessee-bank u/s 201(1) / 201(1A) of the Act vide order dated 09-10-2018. 2. Upon perusal of order of Ld. AO, it could be seen that the assessee paid interest to certain state government entities viz. HP
Financial Corporation, HP Infrastructure Board, HP Road and other Inf.
Dev. Corporation and Chairman SADA Kufri. No TDS was deducted against the same on the ground that these entities were covered u/s 194A(3)(iii)(f). However, these entities were not notified and therefore,
Ld. AO raised demand u/s 201(1) for Rs.22.02 Lacs and also computed consequential interest u/s 201(1A) for Rs.17.39 Lacs. The Ld. CIT(A) did not admit the appeal for want of condonation of delay from 19-10-
2018 till 14-03-2020 i.e., till onset of Covid-19 Pandemic. Aggrieved, the assessee is in further appeal before us,
3. We are of the considered opinion that considering the fact that theimpugned dispute was recurring in nature and therefore, the delay ought to have been condoned. Nevertheless, we find the all the payee entities are 100% Govt. Owned Company / Govt. Department. The notification No.3489 dated 22-10-1970, in terms of Sec.194A(3)(iii)(f), exempt any corporation established by Central, State or provincial Act from the rigors of TDS u/s 194A. Once such a notificationexists, there was no requirement to issue separate notification for each of the entities. In fact, similar orders passed by the department in the case of this assessee u/s 201(1) / 201(1A) for AYs 2010-11, 2013-14 and 2014-15 (placed in the paper-book) would show that this position has been accepted by the department and no demand has been raised against assessee for non-deduction of tax at source against payment of interest to these entities. Therefore, impugned demand as raised against the assessee stand deleted.
The appeal stand allowed.
Order pronounced on 21-04-2025. (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL)
VICE PRESIDENT लेखासद˟ /ACCOUNTANT MEMBER
Dated 21-04-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to :
1. अपीलाथŎ/Appellant
2. ŮȑथŎ/Respondent
3. आयकरआयुƅ/CIT
4. िवभागीयŮितिनिध/DR
5. गाडŊफाईल/GF