UNION BANK OF INDIA RGPV - BHOPAL,BHOPAL vs. ACIT(TDS), BHOPAL, BHOPAL

{
"clean_text": "आयकर अपीलीय अधिकरण, इंदौर न्यायपीठ, इंदौर\nIN THE INCOME TAX APPELLATE TRIBUNAL\nINDORE BENCH, INDORE\nBEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER\nAND\nSHRI PARESH M. JOSHI, JUDICIAL MEMBER\nITA No. 838, 839 & 840/Ind/2024\nAssessment Years: 2012-13, 2013-14 & 2018-19\nUnion Bank of India\nRGPV-Bhopal,\nRGPV Counter\nRajivgandhivishva,\nVidhalaa Gandhinagar,\nBhopal\n(Appellant/Assessee)\nACIT(TDS)\nBhopal\nबनाम /\nVs.\n(Respondent/Revenue)\nPAN: BPLU00862B\nAssessee by Shri Ashish Goyal & N.D. Patwa, ARs\nRevenue by Shri Ashish Porwal, Sr. DR\nDate of Hearing 09.10.2025\nDate of Pronouncement 10.10.2025\nआदेश / ORDER\nPer Bench:\nThe captioned three (3) appeals have been filed by assessee against three (3)\nseparate orders of first-appeals dated 27.01.2023, 27.01.2023 & 24.02.2023\npassed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi\n[“CIT(A)”], which in turn arise out of three separate orders all dated\n26.02.2019 passed by learned ACIT (TDS), Bhopal [“AO”] u/s 201(1) &\n201(1A) of Income-tax Act, 1961 [“the Act"] for the Financial Years 2011-12\n[Q-1 to Q-4], 2012-13 [Q-1 to Q-4] & 2017-18 [Q-1 to Q-4] relevant to\nAssessment-Years [“AY”] 2012-13, 2013-14 & 2018-19 respectively.\nUnion Bank of India RGPV-Bhopal\nITA No. 838, 839 & 840/Ind/2024\nAYs: 2012-13, 2013-14 & 2018-19\n2. The background facts leading to these appeals are that the\nassessee/appellant is a branch of nationalized bank named 'Union Bank of\nIndia' engaged in banking business. A TDS survey was conducted by\nIncome-tax authorities upon premise of assessee on 25.01.2019 and during\nsurvey and subsequent proceedings, it was found by AO that the assessee\nhas paid interest to RGPV, Bhopal during financial years 2011-12, 2012-13\nand 2017-18 without deducting tax at source (TDS). The AO has extracted\ndata of interest payments made by assessee, the TDS deductible, the period\nof delay, interest leviable u/s 201(1A) in his orders. Ultimately, the AO\npassed three separate orders for respective years demanding tax and\ninterest payable by assessee. Aggrieved, the assessee carried matters in\nfirst-appeals before CIT(A) but could not represent cases and the CIT(A)\npassed ex-parte orders dismissing assessee's appeals. Still aggrieved, the\nassessee has come in next appeals before us.\n3. The registry has informed that that these appeals have been filed after\ndelays of 610 days, 607 days and 583 days respectively. Ld. AR for assessee\nsubmitted that the assessee has filed condonation-applications in all three\nmatters supported by affidavits and prays for condonation. The applications\nfiled in all three cases are similarly worded and we re-produce one of the\napplications:\nBEFORE THE HON'BLE ITAT, INDORE BENCH, INDORE\nAppeal No. : ITA 838/IND/2024\nAsesseee : Union Bank of India RGPV - Bhopal\nΑ.Υ. : 2012-13\nRegarding : Condonation – Request Reg.\nAPPLICATION FOR CONDONATION OF DELAY\nMAY IT PLEASE YOUR HONOURS\n1. The order of the ld CIT(A) is dated 27.01.2023. The appeal\ncould have been filed up to 28.03.2023. However the appeal\nhas been filed on 27.11.2024 resulting in a delay of 610 days.\n2. That, after receipt of the order of the ld. CIT(A), the appellant\npreferred an application u/s. 154 of the Act. This application\nwas preferred on 12.05.2023. The application is enclosed as\nAnnexure A. But the Ld. CIT(A) has rejected our application by\npassing order u/s 154 read with section 250 of the Act on\n11.07.2024. This rectification order came to the notice of the\noffice of the appellant bank, in the month of Sept. 2024 only.\nThe copy of said order is enclosed herewith as Annexure B.\n3. The rectification application was pending before Appellate\nAuthority - NFAC, for restoration of illegal order and the\nrectification order was being awaited, the appellant therefore\nwas advised not to file the appeal against the main order. As\nand when the rectification order came to the knowledge of the\nappellant bank, they immediately consulted their counsel and\nfiled the present appeal. The delay hence happened.\n4. The appellant respectfully submits that the delay was\nunintentional, and was inadvertent. The delay happened as the\nappellant was trying to get relief from the other forum, vide\nrectification application. There was no mala-fide intention in\nfiling the appeal belatedly. In the respectful submission of the\npresent appellant, the delay is due to bona-fide reason,\ninadvertent and unintentional, and for no fault of the assessee.\nNo person is benefitted by filing appeal belatedly.\n5. In the interest of justice the delay so caused may kindly be\ncondoned by this Hon'ble Court.\n6. The appellant respectfully prays for condonation of delay in\nfiling the appeal in the interest of justice.\nUnion Bank of India RGPV-Bhopal\nITA No. 838, 839 & 840/Ind/2024\nAYs: 2012-13, 2013-14 & 2018-19\n4. On merit, Ld. AR for assessee made a straightforward submission. He\ninvited our attention to following Provisos to section 201(1)/201(1A) of\nIncome-tax Act, 1961 and Rule 31ACB of Income-tax Rules, 1962,\nprescribing as under:\n1st proviso to Section 201(1):\n“Provided that any person, including the principal officer of a company, who\nfails to deduct the whole or any part of the tax in accordance with the\nprovisions of this Chapter on the sum paid to a payee or on the sum credited to\nthe account of a payee shall not be deemed to be an assessee in default in\nrespect of such tax if such payee—\n(i) has furnished his return of income under section 139;\n(ii) has taken into account such sum for computing income in such return of\nincome; and\n(iii) has paid the tax due on the income declared by him in such return of\nincome,\nand the person furnishes a certificate to this effect from an accountant in such\nform as may be prescribed:\nRule 31ACB:\nThis Rule prescribes Form No. 26A for the purpose of 1st Proviso to section\n201(1).\n1st proviso to Section 201(1A):\n“Provided that in case any person, including the principal officer of a company\nfails to deduct the whole or any part of the tax in accordance with the\nprovisions of this Chapter on the sum paid to a payee or on the sum credited to\nthe account of a payee but is not deemed to be an assessee in default under\nthe first proviso to sub-section (1), the interest under clause (i) shall be payable\nfrom the date on which such tax was deductible to the date of furnishing of\nreturn of income by such payee:”\n5. Then, Ld. AR submitted that the assessee is willing to file the Form No.\n26A and avail benefit of aforesaid 1st Proviso to section 201(1) and 1st\nProviso to section 201(1A). He prayed that the assessee is a branch of\nnationalized bank and needed time to receive the requisite forms from head\noffice and for that reason sought adjournments from CIT(A) but, however,\nthe process took more time and the assessee was unable to make\nsubmissions to CIT(A), which led the CIT(A) to pass ex-parte orders and\ndismiss assessee's appeals. However, the assessee is now ready to make\nsubmissions before CIT(A) and in the interest of justice one more\nopportunity must be given to assessee by remanding these matters to the\nfile of CIT(A) for adjudication afresh.\n6. Ld. DR for revenue fairly agreed to the prayer of Ld. AR. He, however,\nrequested that the assessee be directed to represent its cases fully before\nCIT(A) without seeking unnecessary adjournments.\n7. In view of above, we are inclined to remit these matters back to the file\nof CIT(A) who shall consider the claim of assessee and decide matter afresh.\nThe assessee is also directed to make full representation before CIT(A)\nwithout seeking unnecessary adjournments.\nUnion Bank of India RGPV-Bhopal\nITA No. 838, 839 & 840/Ind/2024\nAYs: 2012-13, 2013-14 & 2018-19\n8. Resultantly, these appeals are allowed for statistical purpose.\nOrder pronounced in open court on 10/10/2025.\n \n(PARESH M. JOSHI)\nJUDICIAL MEMBER\nIndore\nदिनांक /Dated : 10/10/2025\nPatel/Sr. PS\nCopies to: (1) The appellant\n(2) The respondent\n(3) CIT\n(4) CIT(A)\n(5) Departmental Representative\n(6) Guard File\n \n(B.M. BIYANI)\nACCOUNTANT MEMBER\nBy order\nSr. Private Secretary\nIncome Tax Appellate Tribunal\nIndore Bench, Indore",
"summary": {
"facts": "The assessee, Union Bank of India, failed to deduct TDS on interest payments made to RGPV, Bhopal for financial years 2011-12, 2012-13, and 2017-18. The Assessing Officer passed orders under sections 201(1) and 201(1A) demanding tax and interest. The assessee's appeals before the CIT(A) were dismissed ex-parte.",
"held": "The Tribunal found that the assessee was willing to file Form No. 26A to avail the benefit of the 1st Proviso to sections 201(1) and 201(1A). The Tribunal held that to provide an opportunity for adjudication and considering the revenue's agreement, the matters should be remanded to the CIT(A).",
"result": "Partly Allowed",
"sections": [
"201(1)",
"201(1A)",
"154",
"250",
"139",
"31ACB"
],
"issues": "Whether the appeals filed after significant delay due to proceedings under section 154 should be condoned and remanded to the CIT(A) for fresh adjudication."
}
}