PANDYAN GRAMA BANK,VIRUDHUNAGAR vs. ACIT, VIRUDHUNAGAR

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ITA 2445/CHNY/2016Status: DisposedITAT Chennai25 October 2018AY 2009-106 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeals for the assessment years in question. The issues concerning TDS credit and interest under Section 244A were remitted to the CIT(A) for a decision on merits after giving the assessee an opportunity.

What were the facts?

The assessee, Pandyan Grama Bank, claimed deduction under Section 80P(2)(a)(i). The Assessing Officer (AO) denied this deduction, and the CIT(A) confirmed the AO's order. The ITAT had previously allowed the deduction for certain assessment years. The current appeals relate to rectifying TDS credit and interest under Section 244A, and also for assessment year 2010-11.

What were the issues?

The primary issues involved the denial of deduction under Section 80P, rectification of TDS credit and interest under Section 244A, and condonation of delay in filing appeals.

Which sections of the Income-tax Act were involved?

Section 80P,Section 244A,Section 154,Section 246A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, CHENNAI

Before: SHRI GEORGE MATHAN & SHRI S. JAYARAMAN

For Appellant: Shri P. Gurusamy, ITP, Shri S. Sridhar, Advocate
For Respondent: Shri Clement Ramesh Kumar, Addl. CIT
Hearing: 25.10.2018Pronounced: 25.10.2018

आदेश/ O R D E R

PER BENCH :

1.

The assessee filed these appeals against the orders of the Commissioner of Income Tax (Appeals)-1, Madurai in 155, 156 & 153/16-17 dated 23.01.2018 for assessment years 2007-08, 2008-09, 2009-10 & 2010-11, respectively and the consolidated orders of the Commissioner of Income Tax (Appeals)-3, Madurai in ITA Nos. 125, 126 &

:-2-: 685, 687 & 68/Chny/2018 & 2443, 2444 & 2445/Chny/2016 127/13-14 dated 31.05.2016 for assessment years 2007-08, 2008-09 & 2009-10, respectively.

2.

The AR submitted that the Pandyan Grama Bank, filed nil income after claiming deduction u/s. 80P(2)(a)(i) for assessment years 2007-08, 2008-09 & 2009-10. On scrutiny, the AO denied the deduction claimed u/s. 80P(2)(a)(i). Dissatisfied with those orders, the assessee filed appeals before the Ld. CIT(A)- Madurai, who too confirmed the orders of the AO.

Aggrieved against those orders, the assessee filed an appeal before this tribunal. This tribunal in its orders in 1091 & 1092/Mds/2012 dated 23.08.2012 allowed the deduction u/s. 80P(2)(a)(i) for assessment years 2007-08, 2008-09 & 2009-10. The AO gave effect to the orders of the ITAT on 13.05.2013, 14.03.2013 & 08.03.2013 for assessment years 2007-08, 2008-09 & 2009-10, respectively. Since, there were mistakes in the quantification of interest u/s. 244A, giving credit to TDS ie., to rectify the shortfall in credit of TDS in the computation formed part of the effect giving orders of the Hon’ble ITAT, the assessee filed rectification petitions u/s. 154 dated 12.07.2013 on 29.07.2013 for all these assessment years. Since, the Assessing Officer has not passed the rectification orders, the assessee filed appeals before the Ld CIT(A)-3, Madurai on 17.02.2014 for assessment years 2007-08, 2008-09, 2009-10, respectively. The Ld. CIT(A) dismissed the appeals by a common appellate orders in ITA Nos. 125, 126 & 127/13-14 dated 31.05.2016 stating that the :-3-: 685, 687 & 68/Chny/2018 & 2443, 2444 & 2445/Chny/2016 section 246A provides the list of appealable orders in which it has not provided that the appeals may be filed after a period of 6 months from the date of filing of petition u/s. 154, if the same has not been decided by the Assessing Officer. The right of appeal is not an automatic right but is confirmed by the statue. In the absence of providing appeal in section 246A, he is unable to admit these appeals and they are dismissed in liminie.

3.

Thereafter, the assessee filed appeals on 14.09.2016 against the orders passed by the AO giving effect to the orders of the Hon’ble ITAT. with condonation petitions for assessment years 2007-08, 2008-09 & 2009- 10, respectively. The Ld. CIT(A)-1, did not condone the delay in filing the appeals, ie., delay of 3 years 66 days for the assessment year 2007-08, delay of 3 years 154 days for assessment year 2008-09 and a delay of 3 years 151 days for assessment year 2009-10 . Considering the above facts and circumstances, dates and events, the AR pleaded to condone the delay in filing the appeals for assessment years 2007-08, 2008-09 & 2009-10 and render justice.

4.

We heard the rival submissions. Considering the above facts and circumstances, we condone the above delay in filing the above appeals in the interests of justice.

:-4-: 685, 687 & 68/Chny/2018 & 2443, 2444 & 2445/Chny/2016

5.

The AR reiterated the above facts and circumstances and submitted that the AO may be directed to verify and grant due credit for the TDS and due interest u/s. 244A on the orders passed by him giving effect to this tribunal orders, supra.

6.

We heard the rival submissions and remit the issues to the Ld. CIT(A) for giving due opportunity to the assessee and decide the matter on merits.

The Ld. CIT(A) is at full liberty to remand/seek appropriate reports from the AO and decide the issues in accordance with law, after affording adequate opportunity to the assessee. Hence, the assessee’s appeals in ITA Nos.

685,684 & 687/Chny/2018 for assessment years 2007-08, 2008-09 & 2009- 10 are treated as partly allowed for statistical purposes

7.

In respect of assessment year 2010-11, the AR submitted that the AO rejected the assessee’s claim of deduction u/s. 80P(2)(a)(i) u/s. 143(3).

Aggrieved against that order, the assessee filed an appeal before the Ld. CIT(A) and the Ld. CIT(A) allowed the assessee’s appeal. In the consequential order passed by the AO dated 13.04.2015, received by the assessee on 08.05.2015, it is mentioned that Rs. 12,04,75,740/- is refundable to the assessee. Till date the assessee has not received the amounts mentioned as refundable in that order. There was no mention about adjustment of the refund against any tax payments raised for any of the assessment years also. The assessee also filed a petition u/s. 154

:-5-: 685, 687 & 68/Chny/2018 & 2443, 2444 & 2445/Chny/2016 seeking to grant interest u/s. 244A on 01.06.2015 vide acknowledgement no. 048010615000608 which has not acted upon even as on today. In the absence of concrete material on record, the assessee was unable to file the appeal within the time. Coupled with them and the genuine hardship faced by the assessee with reference to the earlier years, the assessee sought condonation of delay of 1 year 101 days for filing the appeal against the consequential order passed by AO for assessment year 2010-11. However, the Ld. CIT(A) dismissed the appeal without condoning the delay.

8.

We heard the rival submissions. On the above facts and circumstances and in the interests of justice, we condone the delay.

9.

The AR reiterated the above facts and circumstances and submitted that the AO may be directed to verify and grant due credit for the TDS and interest u/s. 244A on the consequential order passed by the AO.

10.

We heard the rival submissions and remit the issues to the Ld. CIT(A) for giving due opportunity to the assessee and decide the matter on merits.

The Ld. CIT(A) is at full liberty to remand/seek appropriate report from the AO and after affording adequate opportunity to the assessee decide the issues in accordance with law. Hence, the assessee’s appeal in for assessment year 2010-11 is treated as partly allowed for statistical purposes.

:-6-: 685, 687 & 68/Chny/2018 & 2443, 2444 & 2445/Chny/2016 11. With regard to the appeals in ITA Nos. 2443, 2444 & 2445/Chny/2016 for assessment years 2007-08, 2008-09 & 2009-10, since, the appeals in statistical purposes, these appeals are treated as infructuous and hence they are dismissed.

12.

In the result, the assessee’s appeal in 684,687 & 688/Chny/2018 for assessment years 2007-08, 2008-09, 2009-10 & 2010-11 are treated as partly allowed for statistical purposes, and the appeals in ITA Nos 2443, 2444 & 2445/Chny/2016 for assessment years 2007-08, 2008-09 & 2009-10 are treated as infructuous and hence they are dismissed.

Orders pronounced in the open court on 25th October, 2018 at Chennai.

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