BANK OF BARODA vs. THE INCOME TAX OFFICER (TDS)

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WA/6035/2015HC KarnatakaKAHC02000030201514 March 2016Bench: H.G.RAMESH,G.NARENDAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court set aside the orders of the Single Judge and the First Appellate Authority. The matter was remanded back to the Appellate Authority for reconsideration, specifically on the applicability of the first proviso to Section 201(1) of the Income Tax Act.

What were the facts?

The Bank of Baroda filed writ petitions challenging an order treating it as an assessee in default for non-deduction of TDS. The First Appellate Authority rejected the bank's application for a stay, and a Single Judge of the High Court dismissed the writ petitions, affirming the appellate authority's order.

What were the issues?

Whether the first proviso to Section 201(1) of the Income Tax Act is applicable to the facts of the case, and whether the appellate authorities properly considered this aspect.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

W.A. Nos. 6035-6038 of 2015 -1- IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 14TH DAY OF MARCH 2016 PRESENT THE HON’BLE MR. JUSTICE H.G.RAMESH AND THE HON’BLE MR. JUSTICE G.NARENDAR W.A. Nos. 6035-6038 of 2015 (T-IT) BETWEEN : BANK OF BARODA REPRESENTED BY CHIEF MANAGER: MR. UPADHYAYALAKAMESWARA RAO BELAGAVI BRANCH, 1568, MARUTI GALLI, BELAGAVI-590002. ... APPELLANT (BY SRIYUTHS B. S. N. PRASAD AND H.R. KAMBIYAVAR, ADVOCATES) AND : 1. THE INCOME TAX OFFICER (TDS) F.K.COMMERCIAL COMPLEX OPP. DISTRICT HOSPITAL DR.B.R.AMBEDKAR ROAD, BELAGAVI-590001 2. THE COMMISSIONER OF INCOME TAX (APPEALS) F.K.COMMERCIAL COMPLEX OPP. DISTRICT HOSPITAL DR.B.R.AMBEDKAR ROAD, BELAGAVI-590001. ... RESPONDENTS (BY SRI Y.V. RAVIRAJ, ADVOCATE)

W.A. Nos. 6035-6038 of 2015 -2- THESE WRIT APPEALS ARE FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER PASSED IN THE WRIT PETITION NOS.114181-114184 OF 15 DATED 18/12/15. I.A. NO.2/2015 IS FILED FOR STAY. THESE W.As. A/W. I.A. COMING ON FOR PRELIMINARY HEARING THIS DAY, H.G. RAMESH J., DELIVERED THE FOLLOWING: JUDGMENT H.G.RAMESH, J. (Oral):

1.

These appeals are directed against an order of a learned Single Judge dated 18.12.2015 made in W.P. Nos.114181-114184 of 2015. By the impugned order, the learned Single Judge has dismissed the appellant’s (Bank of Baroda) aforesaid writ petitions by affirming the interlocutory order dated 15.04.2015 passed by the First Appellate Authority (respondent No.2 herein) rejecting the interlocutory applications filed in their appeals for grant of stay of the impugned demand dated 16.03.2015. The appeals are preferred against the orders of the Assessing Officer dated 23.02.2015 passed under Section 201(1) & (1A) of the Income Tax Act, 1961 (‘the Act’, for short) against the appellant treating the appellant as an assessee in default.

W.A. Nos. 6035-6038 of 2015 -3- 2. By consent of learned counsel on both sides, the appeals are heard finally on merits and are being disposed of by this order. 3. The sole contention urged by learned counsel appearing for the appellant – Bank is that the First Appellate Authority as well as the learned Single Judge have not considered the applicability of the first proviso to Section 201(1) of the Act to the facts of the case. Learned counsel appearing for the appellant further submitted that the aforesaid proviso is attracted to the facts of the case. 4. Learned counsel appearing for the respondents – Revenue submitted that the appellant has now furnished a certificate dated 11.06.2015 contemplated under the first proviso to Section 201(1) of the Act. 5. In view of the above, in our opinion, the impugned order of the learned Single Judge dated 18.12.2015 as well as the order passed by First Appellate Authority dated 15.04.2015 rejecting the appellant’s application filed for interim stay are liable to be set aside and the matter

W.A. Nos. 6035-6038 of 2015 -4- requires to be reconsidered by the Appellate Authority, namely the Commissioner of Income Tax (Appeals), in accordance with law. Ordered accordingly. The Appellate Authority shall inter alia consider as to whether the first proviso to Section 201(1) of the Act is applicable to the facts of the case or not. All contentions of both the parties are kept open. The appeals stand disposed of in the above terms. 6. In view of disposal of the appeals, I.A. No.2/2015 filed for interim stay does not survive for consideration; it stands disposed of accordingly. Appeals disposed of. Sd/- JUDGE Sd/- JUDGE hnm

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