M/S VARRSANA ISPAT LTD.,KOLKATA vs. ITO, WD-TDS, WD-59(4), KOLKATA, KOLKATA

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ITA 1249/KOL/2016Status: DisposedITAT Kolkata31 May 2018AY 2008-093 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the issue involved reconciliation of TDS deduction figures. It was observed that the factual position regarding the impugned demand was identical across appeals and that the 'TRACES' details seemed prima facie correct.

What were the facts?

The assessee appealed against demands raised under Section 201(1) r.w. Section 201(1A) for short deduction/collection of tax. The lower authorities had concluded that there was a default due to payments made without PANs or with wrong PANs.

What were the issues?

Whether the demands raised for short deduction of TDS were justified, considering the possibility of reconciliation issues and departmental-level settlement of discrepancies.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 194A,Section 194I,Section 194J

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “B” KOLKATA

Before: Shri S.S.Godara & Dr. A.L. Saini

आयकर अपील�य अधीकरण, �यायपीठ – “B” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “B” KOLKATA Before Shri S.S.Godara, Judicial Member and Dr. A.L. Saini, Accountant Member Assessment Year :2007-08 M/s Varrsana Ispat Ltd. V/s. Commissioner of Income 46C, Chorwringhee Tax, Appeals-24, Road, Kolkata-71 ITO, Ward-59(4)/TDS, [PAN No.CALV 0215 E] Kolkata .. अपीलाथ� /Appellant ��यथ�/Respondent Assessment Year :2008-09 M/s Varrsana Ispat Ltd. V/s. Income Tax Officer Everest House, 46C, (TDS), Ward-59(4), 10B, Chowringhee Road, 15th Middleton Row, Kolkata- Floor, R.No. 15B, 71 Kolkata-71 [PAN No.CALV 0215 E] .. अपीलाथ� /Appellant ��यथ�/Respondent Shri Ravi Tulsiyan, FCA आवेदक क� ओर से/By Assessee Shri S. Dasgupta, Addl. CIT-DR राज�व क� ओर से/By Respondent 30-05-2018 सुनवाई क� तार�ख/Date of Hearing 31-05-2018 घोषणा क� तार�ख/Date of Pronouncement आदेश /O R D E R PER S.S.Godara, Judicial Member:- These four assessee’s appeal(s) pertain to three quarters of Financial Year 2007-08 and first quarter in financial year 2008-09 (assessment year 2008-09 & 2009-10), arise against Commissioner of Income Tax (Appeals)-24, Kolkata’s common order dated 30.11.2015, passed in 673, 674 & 675/CIT(A)- 24/Kol/2011-12 in former three and dated 11.04.216 in respect of fourth case; -325 & 1249/Kol/2016 A.Ys. 07-08 & 08-09 M/s Varrsana Ispat Ltd. Vs. ITO (TDS Wd-59(4))/CIT(A)-24 Kol. Page 2 respectively, involving proceedings u/s201(1) r.w. Section 201(1A) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

2.

It appears at the outset that the assessee’s instant four appeal(s) challenge correctness of both the lower authorities identical action raising Section 201(1) r.w. 201(1A) demands of ₹1,03,720 & ₹34,240/-, ₹7190 & ₹2,800, ₹14,90,150/- & ₹5,36,454/- & ₹13,410/- and ₹4,430; (appeal-wise); respectively by concluding that there has been short deduction / collection of tax in corresponding quarters at its behest.

3.

Learned counsel representing assessee takes us to the CIT(A)’s common order (supra) for the instant sole issue rejecting its arguments by way of the following discussion:- “4. The appellant or its AR didn’t avail of the opportunity of being heard. From the submission, dt NIL it appears that the claim is that there is no short deduction in respect of various payments hit by the provisions of sec. 194A, 194I & 194J of Income Tax Act, 1961. When the submission was received, a copy of the same was sent to the AO for the required verification and report. Vide the AO's report, dt. 07.11.2014 it is seen that the appellant has made payments without obtaining the PANs or wrong PANs were entered in the TDS statement. The AO is of the view that the appellant has defaulted. The Assessing Officer's said report is vague and doesn’t help appreciate when he wants to say even in respect of the points covered in his so called remand report dt. 07.11.2014.

5.

The appellant apparently is not keen for hearing. The TDS liability u/s. 201 of the ITA Act, 1961 is determined by the system called TRACES. The appellant has not even indicated whether it tried to rectify the statement is TRACES. It is also not known if it tried what was the difficulty in updating the TDS details in the said TRACES. A case like this is first attempted by accessing the TRACES facility which forms the base f the order u/s.

201.

In case of difficulty in reducing liability to an amount agreeable to the tax deductor, the issues are expected to be bought to the knowledge of the AO or CIT(A) ho can take corrective steps to align mismatch to the liability in terms of the Act and Rules. The appellant is silent on whether any attempt was made to rectify the TRACES working. The AR or the appellant has failed to take- up the matte before me as is clear from the non-compliance to various notices described above. I, therefore am not in a position to even appreciate how the grievance if any can be addressed by the AO or the CIT(A). I feel that no further time will help resolve the grievances if any. I have no reason to interfere with the order appealed against. The grounds therefore, are not allowed and the appeal is dismissed.” There is no dispute that the factual position relating to the impugned demand is very much identical in assessee’s fourth appeal as well.

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