COMMISSIONER OF INCOME TAX vs. KARNATAKA VIKASH GRAMEENA BANK

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NC: 2023:KHC-D:10840-DB ITA No.100020 of 2022

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF SEPTEMBER, 2023 PRESENT THE HON'BLE MR JUSTICE S.R. KRISHNA KUMAR AND THE HON'BLE MR JUSTICE G BASAVARAJA INCOME TAX APPEAL NO.100020 OF 2022

BETWEEN:

COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, NAVANAGAR, HUBBALLI-580025. …APPELLANT

(BY SRI Y.V. RAVIRAJ, ADVOCATE)

AND:

KARNATAKA VIKASH GRAMEENA BANK, HEAD OFFICE, CTS NO. 51/B1/A1/D.H.NO.133A, HO BUILDING, BELAGAVI ROAD, DN KOPPA, DHARWAD-580008, PAN: AAAAK 6324Q. …RESPONDENT

THIS INCOME TAX APPEAL FILED UNDER SECTION 260A OF THEINCOME TAXT ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW STATE ABOVE, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH “B” BENCH BANGALORE INITA NO.637/BANK/2015, DATED 19.02.2020 AND CONFIRMT THE ORDER PASSED BY THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, HUBLI FOR THE ASS YEAR 2011-12.

ROHAN HADIMANI T Digitally signed by ROHAN HADIMANI T Date: 2023.09.25 11:39:30 +0530

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NC: 2023:KHC-D:10840-DB ITA No.100020 of 2022

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, KRISHNA KUMAR, J., DELIVERED THE FOLLOWING:

JUDGMENT

This appeal by revenue is directed against the impugned order dated 19th February 2020 passed by the Income Tax Appellate Tribunal, Bangalore, whereby the appeal preferred by the respondent was allowed by the Income Tax Appellate Tribunal, which remitted the matter back to the assessing authority for reconsideration afresh, in accordance with law. 2. The material on record discloses that the respondent- assessee is a Regional Rural Bank engaged in the business of Banking. It is seen that for the Assessment Year 2011-2012, the Assessing Authority completed the assessment under Section 143(3) of Income Tax Act, 1956 and addition of Rs.28,99,67,755/- under Section 40(a)(ia) for non-deduction of Tax under Section 194A of the Income Tax Act was made by the Assessing Authority towards disallowance of interest payment made by the assessee who had not deducted tax at source on the ground that Form 15H had not been submitted by the respondent before the Assessing Authority. It was the specific contention of the respondent-Bank that though the

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NC: 2023:KHC-D:10840-DB ITA No.100020 of 2022

depositors had submitted Form 15H, but the same could not be produced before the Assessing Authority by the respondent- Bank as the same were not available. The assessing authority, taking note of the fact that Form 15H had not been produced by the respondent-assessee, passed an order dated 17th December, 2013 against the respondent-assessee. 3. Aggrieved by the same, the respondent filed statutory appeal before the Commissioner (Appeals), who dismissed the appeal vide order dated 30th January, 2015. Aggrieved by the order of the Appellate Authority, the respondent preferred a statutory appeal before the Income Tax Appellate Authority, which allowed the same vide impugned order by taking note of the fact that on the same issue regarding non-production of Form 15H by the very same respondent-assessee for the earlier assessment years, the Tribunal had remitted the matter back to the Assessing Authority for the purpose of providing an opportunity in favour of the respondent to produce the said Form 15H, which had not been produced by it earlier. The said order passed by the Income Tax Appellate Authority for the Assessment Year 2010-2011 was carried before this Court in Income Tax Appeal No.100051 of 2018 which was dismissed by

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NC: 2023:KHC-D:10840-DB ITA No.100020 of 2022

this Court vide final order dated 12th September, 2019 by holding as under: “6. It is in this background that order of the Assessing Authority as well as Appellate Authority is rightly set side by the Tribunal and the same is remanded back to the Assessing Authority for fresh consideration. On going through the order impugned, this Court is of the considered opinion that the order of remand is just and proper on factual matrix of the case. Therefore, question of interfering with the same in this appeal does not arise; inasmuch as no substantial question of law arises for consideration in this appeal. Accordingly, appeal filed by the revenue is hereby dismissed.” 4. As can be seen from paragraph 6 of the Order referred to supra, this Court has come to the conclusion that an opportunity is to be granted/provided in favour of the respondent-assessee to produce Form 15G/15H, which had not been produced earlier and consequently, the said appeal did not involve or give rise to any substantial question of law warranting interference by this Court. 5. Perusal of the aforesaid order dated 12th September, 2019 passed in Income Tax Appeal No.100051 of 2018. will

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NC: 2023:KHC-D:10840-DB ITA No.100020 of 2022

indicate that the same pertains to Assessment Year 2010-11, while the instant case relates to Assessment Year 2011-2012 in respect of the very same respondent-assessee. The facts involved in the aforesaid order are exactly identical and similar to the facts obtaining for consideration in the present appeal also. Under these circumstances, in the light of the judgment of this Court in Income Tax Appeal No.100051 of 2018 dated 12th September, 2019 involving the present respondent- assessee, we do not find any question of law, much less, substantial question of law, arising for consideration in the present appeal also. Appeal accordingly dismissed.

Sd/- JUDGE

Sd/- JUDGE

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