Income Tax Appellate Tribunal - Jaipur
Punjab National Bank, Jaipur vs Assistant Commissioner Of Income Tax ... on 20 November, 2018
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES "B", JAIPUR
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BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@ITA No. 887/JP/2018
fu/kZkj.k o"kZ@Assessment Year: 2009-10
Punjab National Bank, cuke Assistant Commissioner of
Rajasthan Housing Board, Vs. Income Tax (TDS),
Pratap Nagar, Jaipur. Jaipur.
PAN/TAN No. JPRP 00577 D
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@ Assessee by : Shri Sandeep Jhanwar (CA)
jktLo dh vksj ls@ Revenue by : Shri Anup Singh (JCIT)
lquokbZ dh rkjh[k@ Date of Hearing : 19/11/2018
mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 20/11/2018
vkns'k@ ORDER
PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 19/03/2018 of ld. CIT(A)-3, Jaipur arising from order passed U/s 201(1)/201(1A) of the Income Tax Act, 1961 (in short the Act) for the A.Y. 2009-10. The assessee has raised sole effective ground of appeal, which is as under:
"1. Under the facts and circumstances of the case, the ld. CIT(A) has erred in upholding a demand of Rs. 2,83,592/- raised by ACIT(TDS), Jaipur on account of interest U/s 201(1A) of the IT Act, 1961.
2. The assessee craves the right to add, amend, alter or modify any of the ground of appeal."
2 ITA 887/JP/2018_ Punjab National Bank Vs. ACIT(TDS)
2. The assessee is a public sector nationalized bank and has made payments inter alia to Software Technology Parks of India (STPI), Jaipur. The Assessing Officer while passing the order U/s 201(1)/201(1A) of the Act has held that the assessee in default for want of deduction of TDS on the payment of interest of Rs. 28,60,035/- to STPI. The Assessing Officer held that the payments in question are subjected to TDS U/s 194A of the Act and failure on the part of the assessee as referred the assessee to be liable as the assessee in default.
3. The assessee challenged the action of the Assessing Officer before the ld. CIT(A). The ld. CIT(A) though accepted the contention of the assessee regarding the payment made to National Institute of Agricultural Marketing (NIAM) being the institution which is exempt from tax U/s 10(23)(3b) of the Act and accordingly deleted the addition made by the Assessing Officer in respect of the payment to NIAM. However, the ld. CIT(A) has confirmed the assessment/demand raised by the Assessing Officer U/s 201(1) in respect of Rs. 2,83,592/- on the interest payment to STPI.
4. Before us, the ld AR of the assessee has submitted that the STPI is an autonomous society and formed by the Ministry of Electronics & Information Technology, Government of India on 05/6/1991, therefore, the said society is registered under the Societies Registration Act, 1860 is 3 ITA 887/JP/2018_ Punjab National Bank Vs. ACIT(TDS) exempt from TDS U/s 194A(3)(iii)(f) of the Act vide notification No. SO3489 dated 22/10/1970. The ld AR has also filed the background of STPI taken from the website of Ministry of Electronics & Information Technology, Government of India and submitted that the said society under the Societies Registration Act, 1860 under the Ministry of Electronics & Information Technology, Government of India, thus as per the provisions of Section 194A(3)(iii)(f) of the Act, any society registered under the Societies Registration Act, 1860 financed wholly by the Government is exempt from TDS as per the notification No. SO3489 dated 22/10/1970. Hence, the ld AR has submitted that the payment made to the society is not liable for TDS as per the said notification issued U/s 194A(3)(iii)(f) of the Act. However, since this plea was not raised before the authorities below, therefore, he has pleaded that the issue may be remitted to the Assessing Officer for verification and adjudication.
5. On the other hand, the ld DR has submitted that despite sufficient opportunities, the assessee did not raise this issue, therefore, the same cannot be raised at this stage. He has relied upon the orders of the authorities below.
6. Having considered the rival submissions as well as relevant material on record we note that the STPI is a society established and 4 ITA 887/JP/2018_ Punjab National Bank Vs. ACIT(TDS) registered under the Societies Registration Act, 1860 by the Ministry of Electronics & Information Technology, Government of India on 05/6/1991. As per the notification scheme U/s 194A(3)(iii)(f) of the Act if any society is registered under the Societies Registration Act 1860 and financed wholly by the Government then as per the notification No. SO3489 dated 22/10/1970, the deduction of tax at source is not required so far as the interest paid to such society. Since this status of STPI being notified U/s 194A(3)(iii)(f) of the Act has not been verified by the authorities below, therefore, we set aside this issue to the record of the Assessing Officer for verification and adjudication of this issue whether the STPI is a society falling under the category as notified U/s 194A(3)(iii)(f) of the Act as claimed by the assessee. Needless to say that the assessee is given appropriate opportunity of hearing before passing the order.
7. In the result, appeal of the assessee is allowed for statistical purposes only.
Order pronounced in the open court on 20/11/2018.
Sd/- Sd/-
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(VIKRAM SINGH YADAV) (VIJAY PAL RAO)
ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member
Tk;iqj@Jaipur
fnukad@Dated:- 20th November, 2018
*Ranjan
5 ITA 887/JP/2018_
Punjab National Bank Vs. ACIT(TDS)
vkns'k dh izfrfyfi vxzsf'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- Punjab National Bank, Jaipur.
2. izR;FkhZ@ The Respondent- The ACIT (TDS), Jaipur.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr¼vihy½@The CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur
6. xkMZ QkbZy@ Guard File (ITA No. 887/JP/2018) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar