ITO(TDS), SAMBALPUR vs. STATE BANK OF INDIA, BOLANGIR

आयकर अपील�य अ�धकरण, कटक �यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAVAN KUMAR GADALE, JM आयकर अपील सं./ITA No.237/CTK/2015 (�नधा�रण वष� / Assessment Year :2012-2013) ITO (TDS), Aayakar Bhawan, Vs. State Bank of India, Ainthapali, Sambalpur Bolangir Branch, Titilagarh Road, Bolangir- 767001 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : (अपीलाथ� /Appellant) (��यथ� / Respondent) .. राज�व क� ओर से /Revenue by : Shri Kunal Singh,CITDR �नधा�रती क� ओर से /Assessee by : Shri S.N.Sahu, AR सुनवाई क� तार�ख / Date of Hearing : 28/08/2017 घोषणा क� तार�ख/Date of Pronouncement 31/08/2017 आदेश / O R D E R Per Shri Pavan Kumar Gadale, JM: The revenue has filed an appeal against the order of CIT(A), Cuttack, dated 27.02.2015, passed in I.T.Appeal No.135/2013-14, u/s.201(1)/201(1A) of the Income Tax Act, 1961 for the assessment year 2012-2013, wherein the revenue has raised the following grounds :- 1. Whether the Ld. Appellate Authority was justified to accept the fresh TDS Parked Account statement of Rs.37,60,404/- by ignoring the TDS Parked Account statement of Rs.70,51,462/- which was detected during the time of TDS verification conducted by the AO. 2. Whether the Ld. Appellate Authority was justified to ignore the reversed TDS amount of Rs.65,72,120/- made by the deductor without remitting the same to the credit of Central Government Account. The reversal of TDS was also made by violating the procedure for non deduction i.e. without submission of Form No. 15G / 15H and submission of the same to the competent Income Tax Authority. 3. Whether the Appellate Authority was justified to ignore the facts of the case that there was TDS deduction of Rs.70,51,462/- as per the TDS Parked Account statement, remittance to the credit of the Central Government Account of Rs.4,79,342/- only and non remittance of deducted TDS of Rs.65,72,120/-. The Ld. Appellate Authority was in opinion and satisfaction with production of Form No. 15G/15H in respect of TDS amount of Rs.35,04,947/- only and directed the AO to treat the

2 ITA No.237/CTK/2015 deductor as assessee in default for Rs.2,55,457/-, by nowhere mentioning the cause of non deduction (i.e. non-remittance) of the rest amount of Rs.28,11,716/-. 2. At the time of hearing the ld. AR of the assessee filed an

adjournment petition seeking adjournment, however, considering facts of

the case, we reject the adjournment petition and appeal is heard on

merits.

TDS Inspection conducted by the ITO against the assessee on 8.2.2013 it

was found that the assessee bank has deducted TDS of Rs.70,51,462/-

u/s.194A in the financial year 2011-12 but out of said demand only

Rs.4,79,342/- was deposited with Central Government. Further, in respect

of remaining amount the bank authorities explained that the same was

reversed to the deductee on account of submission of form No.15H & 15G

but these were not provided in the assessment proceedings. Since the

assessee-bank could not produce the form No.15H&15G being necessary

for revenue to ascertain whether TDS has been deducted or not and the

AO is of the opinion that assessee has defaulted in deduction of TDS and

also not deposited the TDS along with interest with Government and has

passed order u/s.201(1) & 201(1A) of the Act dated 25.3.2013 and raised

demand of Rs.73,60,774/- including interest u/s.201(1A) of the Act.

the CIT(A). In the appellate proceedings, ld. AR argued the grounds and

reiterated the submissions made before the AO and submitted that the

assessee should not be treated as assessee in default u/s.201(1) for

short/non-deduction of TDS and no interest u/s.201(1A) should be

3 ITA No.237/CTK/2015 charged. The Ld. AR further submitted that form No.15G & 15H are

placed before the CIT(A) but could not produce before the ITO(TDS) for

various reasons. The CIT(A) considering the submissions of assessee that an amount of Rs.37,60,404/- was reversed to the customers’ account

on submission of the above forms to the extent of Rs.35,04,947/- and directed the AO to treat the amount of Rs.2,55,457/- as short

deduction/non-deduction of TDS, however, imposed interest u/s.201(1A) of the Act on the amount of Rs.2,55,457/- as short deduction/non-

deduction of TDS and calculate the interest u/s.201(1A) of the Act on the

amount of Rs.2,55,457/- only and partly allowed the appeal of the

assessee.

before the Tribunal.

considering the form no.15G/15H in respect of TDS amount being fresh

evidence, whereas the same was not produced in the assessment

proceedings and the AO was deprived to verify the claim and prayed for

restoration of disputed issues to the file of AO. Contra ld. AR for the

assessee relied on the order of CIT(A).

available on record. We found that the assessee has produced form

No.15G&15H before the CIT(A) and CIT(A) has given relief to the assessee. However, the ld. AR could not explain why the said information

could not be produced in the assessment proceedings. We are of the

4 ITA No.237/CTK/2015 opinion, the AO was deprived of opportunity to examine and verify the claim of the assessee. Accordingly, in the interest of substantial justice, we restore the disputed issue for a limited purpose to the file of AO to verify the form No.15G&15H submitted by the assessee and pass the order on merits after providing adequate opportunity of hearing to the assessee. 8. In the result, appeal of the revenue is allowed for statistical purposes. Order pronounced in the open court on this 31/08/2017. Sd/- Sd/- (N. S. SAINI) (PAVAN KUMAR GADALE) लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य / JUDICIAL MEMBER कटक Cuttack; �दनांक Dated 31/08/2017 �.कु.�म/PKM, Senior Private Secretary आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant- 1. ITO(TDS), Aayakar Bhawan, Ainthapalli, Sambalpur ��यथ� / The Respondent- 2. State Bank of India, Bolangir Branch, Titlagarh Road, Bolangir-767001 आयकर आयु�त(अपील) / The CIT(A), 3. आयकर आयु�त / CIT 4. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, कटक / DR, ITAT, Cuttack 5. आदेशानुसार/ BY ORDER, गाड� फाईल / Guard file. 6. स�या�पत ��त //True Copy// (Senior Private Secretary) आयकर अपील�य अ�धकरण, कटक / ITAT, Cuttack