DCIT TDS CIRCLE 2(1), CHENNAI vs. PUNJAB NATIONAL BANK, CHENNAI

These appeals by the Revenue are directed against the order passed by the learned Commissioner of Income Tax (Appeals)-17, dated 30.06.2017 in to 61,88 to 93,&/16-17/CIT(A)-17 for the assessment year 2009-10 passed U/s.250(6) r.w.s. 201/201(1A) of the Act.

The Revenue has raised three identical grounds in its appeals however the crux of the issue is that the Ld.CIT(A) has erred in 2 & 2371/Chny/2017 holding that the assessment order passed by the Ld.AO is after the time lapse of four years when the order was issued on 28.03.2016 which is well within the time limit of six years from the financial year.

The brief facts of the case are that the assessee is a nationalized bank who has preferred appeal against the demand notice issued against their four branches viz., to 93 - Mint Street Branch, ITA No.54 to 61 – Purasawakkam Branch, ITA No.46 - Nungambakkam Branch and ITA No.47 –Mahalingapuram Branch.

In the case of all the above mentioned branches of the assessee bank, the Ld.AO has levied interest invoking the provisions of Section 201 & 201(1A) of the Act. On appeal, the Ld.CIT(A) relying on the decision of the Hon’ble Gujarat High Court in the case M.R. Shah J, S.H. Vora J 201, 201(3) vide order dated 5th February 2016 (Date of publication 28.02.2016) held that since the appellant had filed the returns in time, the demand which has been raised beyond 4 years is invalid. Since the Ld.CIT(A)

In the result both the appeals of the Revenue are dismissed.