BANK OF INDIA,KOLKATA vs. ITO (TDS) 1(2), KOLKATA, KOLKATA

This appeal is directed against the order passed by the learned Commissioner of Income Tax (Appeals)-24, Kolkata, [in short the ‘Ld. CIT(A)’] in appeal no. 369/CIT(A)-24/Kol/11-12 dated 16.06.2017 against the order passed by the learned Income Tax Officer (TDS), Ward-57(2), Kolkata [in short the ‘ ld. AO’] under section [in short u/s] 201/201(1A) of the Income Tax Act, 1961 [in short ‘ the Act’] dated 31.03.2011 for the fourth quarter of financial year 2008-09.

The assessee herein is a branch of Bank of India. The assessee branch had deducted the tax at source on various payments made by it and transferred the same to its zonal office for remittance of the same to the account of Central Government in accordance with the policy taken by the Bank of India at macro level to deposit all TDS from their respective zonal offices. The assessee branch submitted TDS returns using its Tax Deduction Account Number (TAN). The zonal office also filed its quarterly returns including the payments and TDS details of the assessee branch. The assessee branch later cancelled its TDS returns which were filed already. The ld. AO found that there were certain short deduction of TDS amounting to Rs. 2,44,650/- and accordingly, treated the assessee branch as assessee in default for the said amount u/s 201(1) of the Act and also charged interest thereon of Rs. 58,716/- u/s 201(1A) of the Act. This action of the ld. AO was upheld by the Ld. CIT(A).

We have heard rival submissions. The ld. AR pleaded before us that the assessee branch had inadvertently filed its quarterly TDS returns using its TAN. He stated that the zonal office of the bank had also filed its quarterly returns using its TAN considering the payments of the assessee branch. The ld. AR placed on record the latest statement of TDS downloaded from the TRACES ( i.e from the website of Income Tax department) wherein it is seen that there is no demand outstanding as on date for the relevant financial year. We find that this aspect requires factual verification of the ld. AO and accordingly we direct the ld. AO to verify the fact as to whether the requisite TDS together with applicable interest, if any, had been duly remitted by the zonal office of the Bank including the transaction pertaining to the assessee branch herein. If it is found to be correct, then the demand raised in the Bank of India A.Yr. 2009-10 hands of the assessee should be cancelled. Accordingly, grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.