M/S VARRSANA ISPAT LTD.,KOLKATA vs. THE CIT, TDS KOLKATA-24, KOLKATA

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 ITA No.323-325/Kol/2016 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 ITA No.1249/Kol/2016 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;

ITA No.323-325 & 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.

ITA No.323-325 & 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 3 4. Learned counsel refers to assessee’s paper book before us. He invites our attention to page 29 “TRACES” (TDS reconciliation. Analysis & Correction Exercising System) indicating the impugned reconciliation difference to have been settled at department level itself. Mr. Dasgupa points out that all these developments alongwith assessee’s TDS returns for all the impugned quarters. Form-16 in case of Shri Anil Kumar’s salary, challans, payees’ ledgers, party-wise list & ITR acknowledgement forming part of the case records need to be verified afresh. He is very fair in not disputing the fact that the said “TRACES” details forming part of case record seem to be prima facie correct. Be that as it may, both parties are ad idem that the impugned factual issue is more a reconciliation exercise of the TDS deduction figures as updated in the department’s website. We therefore accept assessee’s sole substantive grievance for statistical purpose and leave it open for the Assessing Officer to carry out the necessary factually verification as per law after affording adequate opportunity of hearing. 6. These four assessee’s appeals are allowed for statistical purpose. Order pronounced in the open court 31/05/2018 Sd/- Sd/- (लेखा सद�य) (�या(यक सद�य) (Dr. A.L. Saini) (S.S.Godara) (Accountant Member) (Judicial Member) Kolkata, *Dkp, Sr.P.S )दनांकः- 31/05/2018 कोलकाता । आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. आवेदक/Assessee-M/s Varrsana Ipat Ltd. 46C, Chowringhee Road, Kolkata-71 2. राज�व/Revenue-ITO (TDS) Ward-59(4), 10B, Middleton Row, Kolkata-71 3. संबं4धत आयकर आयु5त / Concerned CIT Kolkata 4. आयकर आयु5त- अपील / CIT (A) Kolkata 5. 8वभागीय �(त(न4ध, आयकर अपील�य अ4धकरण, कोलकाता / DR, ITAT, Kolkata 6. गाड= फाइल / Guard file. By order/आदेश से, /True Copy/ Sr. Private Secretary, Head of Office/DDO आयकर अपील�य अ4धकरण, कोलकाता ।