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Income Tax Appellate Tribunal, BANGALORE BENCHES “ C ” BENCH: BANGALORE
Before: SHRI B.R. BASKARAN & SHRI PAVAN KUMAR GADALE
2 to 371/Bang/2017 consolidated order is passed. For the sake of convenience, we shall take up the ITA No.369/Bang/2017 for the Assessment Year 2012-13 and facts narrated therein. 2. The assessee has raised the following grounds of appeal :
4 to 371/Bang/2017 3. The assessee is a Branch of Karnataka Vikas Grameena Bank.Whereas the Karnataka Vikas Grameena Bank has come into existence on 12.09.2005 and sponsored by Syndicate Bank for catering to the needs of farm sector and non-farm sector. Survey under Section 133A of the Act was conducted on 7.1.2015 in the premises of assessee for verifying the compliance of TDS provisions under Chapter XVI B of the Act. During the survey proceedings, details were called for in respect of interest payments exceedingRs.10,000/- per annum and copies of Formno 15G & 15H . Whereas the assessee has obtained Form no15G &15H only from four customers and for remaining customers, no compliance of TDS provisions. Finally, assessing officer passed order under Section 201(1) and 201(1A) of the Act dt.4.3.2015 with demand of Rs.31,794 being shortfall of TDS under Section 194A of the Act under Section 201(1) and 201(1A) of Rs.11,128 aggregating to Rs.42,922. Aggrieved by the order, the assessee has filed an appeal with the CIT(Appeals), But The CIT(Appeals) has confirmed the action of the Assessing Officer and dismissed the appeal. Aggrieved by the order, the assessee has filed an appeal with the Tribunal.
At the time of hearing, the learned Authorized Representative submitted that the CIT(Appeals) has erred in confirming the order of Assessing Officer, whereas the assessee has obtained Formno15G & 15H from four depositors and whereas in respect of others, they are agriculturists and no Return of Income was filed. The 5 ITA Nos.369 to 371/Bang/2017 learned Authorized Representative submitted that the provisions of Section 194A of the Act shall not apply where there is no taxable income in the hands of deductees. and supported his arguments with the decision rendered by Panaji Bench in the case of RBL Bank Limited Vs. ITO (TDS) (2016) 65 Taxman.com 219 (Panaji). Contra, the learned Departmental Representative supported the orders of CIT(Appeals).
We heard the rival contentions and perused the material on record. The sole disputed issue argued and envisaged by the learned Authorized Representative that the CIT(Appeals) has erred in confirming the action of the Assessing Officer on raising demand under Section 201(1) and 201(1A) of the Act. The learned Authorized Representative emphasized that the assessee has complied with the provisions and deposit holders have offered income in their income tax assessments In respect of other deposit holders, they do not have taxable income and are agriculturists, hence the question of deduction of TDS does not arise, and relied on the Tribunal decision of RBL Bank Limited Vs. ITO (TDS) (Supra) extracted below :
6 to 371/Bang/2017 In the course of hearing, the Bench has called for statement of deposit holders along with the names, address and the amount of interest, and the learned Authorized Representative expressed inability to submit immediately. He sought time to furnish the details. In any case, we considering the submissions of assessee, are of the opinion that the Assessing Officer has to verify and examine the details of deposit holders and the component of interest paid to deposit holders being agriculturists who do not have taxable income and allow the grounds of appeal of assessee for statistical purposes.
6. Similarly in ITA Nos.370 & 371/Bang/2017, the issues are similar and identical and the same decision as held in ITA No.369/Bang/2017 shall apply. Accordingly, the orders of the CIT(Appeals) is set aside and restore to the file of Assessing Officer with similar directions cited above and allow the grounds of appeal for statistical purposes.
7. In the result, the assessee's appeals are allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page.