ACIT (TDS), DEHRADUN vs. STATE BANK OF INDIA, DEHRADUN
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal, following a coordinate bench decision, held that interest on SRA is not a term deposit and thus Section 194A is not applicable. Therefore, the assessee was not liable for TDS. The Revenue's ground regarding limitation was rendered academic.
What were the facts?
The Assessing Officer (AO) held the assessee bank liable for not deducting TDS on interest credited to ONGC's Site Restoration Account (SRA). The CIT(A) held the AO's order to be barred by limitation under Section 201(3)(i) of the IT Act.
What were the issues?
Whether interest on a Site Restoration Account is subject to TDS under Section 194A, and whether the AO's order was barred by limitation.
Which sections of the Income-tax Act were involved?
Section 194A,Section 201,Section 201(1A),Section 201(3)(i),Section 33ABA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: Sh. G. C. Gupta, Hon’ble & Sh. O.P.Kant
ORDER PER O.P.KANT, A.M. This appeal of the Revenue is directed against the order of the learned Commissioner of Income-Tax (Appeals)-I, Dehradun dated 31.05.2013 in respect of assessment year 2007-08. The Revenue has raised following grounds:- “1. The CIT(A) has erred in law and on facts in holding the order of the AO as barred by limitation ignoring the facts that the assessee had not raised this issue before the AO and therefore the ld CIT(A) should have been given an opportunity to the AO before deciding the issue.
2. The ld CIT(A) has erred in law and facts in holding the order of the AO as barred by limitation by treating the order of AO to be covered u/s 201(3)(i) of the IT Act ignoring the fact that the assessee has not filed any TDS statement in respect of impugned transaction and therefore the case cannot be said to be covered u/s 201(3)(i) of the IT Act. The TDS verification was conducted on 19.02.2013 and order of the AO passed on 22.03.2013 and therefore the order of the AO was well within limitation period.” 2. Facts in brief are that the assessee is a scheduled commercial bank and a verification of Tax Deducted at Source (TDS) was carried out by the “Income-tax Department” on 19/02/2013 on the branch of the assessee bank located at Tel Bhawan, Dehradun. During verification it was observed that the “Oil and Natural Gas Corporation Ltd.” (in short “ONGC”) was maintaining an account called Site Restoration Account (SRA) with the assessee. The learned Assessing Officer (in short „AO‟) observed that no tax was deducted by the assessee bank on the interest which accrued on the said account to the ONGC. Before the ld AO, the assessee submitted that as per provisions of section 33ABA of the Income Tax Act (in short „the Act‟), the amount credited by way of interest in special account or SRA does not attract a tax liability payable by the ONGC limited because the interest on SRA credited by the assessee was deemed to be a deductible deposit and therefore excluded from the total income chargeable under the Act. Further, the assessee contended that the interest was not taxable even at the time of withdrawal if the same was utilized for the purposes contained in the SRA scheme in accordance with the provisions of the Act. The ld. AO, however, did not accept the contention of the assessee and held the assessee to be in default in deducting of tax and raised demand u/s 201 and interest u/s 201(1A) of the Act. Against the said order of the ld. AO, the assessee filed appeal before the learned Commissioner of Income-tax (appeals) [in short „CIT(A)‟], who, then held that as per clause (i) of provisions of section 201(3) of the Act, the AO was required to pass the order within 2 years from the end of financial year in which the statement as referred in section 200 was filed, however the AO failed to comply the said limitation, and therefore, the order of the ld. AO was held invalid being barred by limitation. Accordingly, the ld CIT(A) did not adjudicate matter on merit. Aggrieved, the Revenue has filed an appeal before us.
At the outset, the learned Authorised Representative (in short „AR‟) of the assessee submitted that on merit, the decision of the co-ordinate bench of the Income-tax Appellate Tribunal ( ITAT) in 3937 and 3938/Del/2013, for the Assessment Year 2010-11, 2011-12
More judgments on Section 194A
- S R P Jutha 13 Rajkot VI and Gr S Ma, Rajkot vs ITO WD 1(2)(1) Rajkot, RajkotITA 951/RJT/2025[2017-18]Status: Disposed9 Oct 2026AY 2017-18
- Welspun Aunta Simaria Project Private… vs DCIT, Circle-78(1), DelhiITA 6559/DEL/2025[2019-20]Status: Disposed6 Oct 2026AY 2019-20
- Lakhmanbhai Maru, Vadodara vs ITO, Ward 1(2)(1), Vadodara, Aayakar…ITA 1046/AHD/2026[2024-25]Status: Disposed30 Sept 2026AY 2024-25
- Hexad Infosoft Private Limited… vs Deputy Commissioner of Income Tax Circle…ITA 1713/BANG/2026[2017-18]Status: Disposed29 Sept 2026AY 2017-18
- Hexad Infosoft Private Limited… vs Deputy Commissioner of Income Tax Circle…ITA 1712/BANG/2026[2016-17]Status: Disposed29 Sept 2026AY 2016-17
Recent GST High Court judgments
Search GST case law →- M/S Barnala Steel Industries Private Limited vs. State Of Uttar Pradesh And 2 OthersAllahabad · 22 Oct 2026
- Skd Suppliers Private Limited vs. The Superintendent, Central CGST, Rishra Division, Range-Ii, And AnrCalcutta · 22 Oct 2026
- M/S Aasha Industries vs. State Of U.P. And AnotherAllahabad · 22 Oct 2026
- M/S Bharat Iron Scrap vs. State Of U.P. And AnotherAllahabad · 22 Oct 2026
- Mascot Constructions Co. And Another vs. The Commissioner Of Goods And Services Tax (GST) And AnotherBombay · 22 Oct 2026