Income Tax Appellate Tribunal - Delhi
Union Bank Of India, New Delhi vs Addl. Cit (Tds), Noida on 28 February, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES : B : NEW DELHI
BEFORE SHRI R.S. SYAL, VICE PRESIDENT
AND
MS SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No.5947/Del/2015
Assessment Year : 2008-09
Stay Application No.547/Del/2015
(ITA No.5947/Del/2015)
Assessment Year : 2008-09
Union Bank of India, Vs. Addl.CIT (TDS),
Unit No.416, 4th Floor, A-2D, Sector-24,
World Trade Centre, Noida.
New Delhi.
PAN: AAACU0564G
(Appellant) (Respondent)
Assessee By : None
Department By : Ms Rachna Singh, CIT, DR
Date of Hearing : 27.02.2018
Date of Pronouncement : 28.02.2018
ITA No.5947/Del/2015
SA No.547/Del/2015
ORDER
PER R.S. SYAL, VP:
This appeal filed by the assessee is directed against the order passed by the CIT(A) on 16.10.2015 in relation to the assessment year 2008-09.
2. The only issue raised in this appeal is against treating the assessee as in default in terms of section 201(1) and 201(1A) of the Act.
3. We have heard the ld. DR and perused the relevant material on record. There is no appearance on the side of the assessee despite notice. We are therefore, proceeding to dispose off this appeal ex parte qua the assessee.
4. Briefly stated, the facts of the case are that a TDS survey was conducted at the Brahmaputra Complex, Sector 29, Noida Branch of the Union Bank of India for verifying proper deduction of tax at source. It transpired during the course of survey that the bank was not deducting tax at source on payment of interest on FDRs to New Okhla Industrial Development Authority (NOIDA). It was held that the provisions of section 194A were attracted. That is how, the assessee was treated as assessee in default u/s 201(1) and 201(1A) of the Act for a total amount of 2 ITA No.5947/Del/2015 SA No.547/Del/2015 Rs.3,01,69,838/-. The ld. CIT(A) did not allow any relief to the assessee. The assessee has come up in appeal before the Tribunal.
5. It is noticed that exactly similar issue was heard by the Delhi Bench of the Tribunal in a batch of appeals with ITA Nos.1360 & 1361/Del/2014, etc., covering Canara Bank, Uco Bank, Punjab & Sindh Bank, etc. All the banks in the above batch of appeals made payments of interest to NOIDA without any deduction of tax at source. Vide a common order dated 07.08.2015, the Tribunal has held on merits that payment of interest by the banks to NOIDA did not require any tax withholding as the same was covered u/s 194(3)(iii)(f). Resultantly, the orders passed u/s 201(1) and 201(1A) read with section 194A were set aside. A copy of such order is available on the record. Since the facts and circumstances of the instant appeal are, admittedly, similar to those considered and decided by the Tribunal in the above referred batch of appeals, following the precedent, we set aside the impugned order and, cancel the demand created by treating the assessee as in default u/s 201(1) and 201(1A) of the Act.
6. In the result, the appeal of the assessee is allowed. 3 ITA No.5947/Del/2015 SA No.547/Del/2015
7. In view of the fact that we have disposed off the assessee's appeal, the stay application has become infructuous. The same is, therefore, dismissed.
The order pronounced in the open court on 28.02.2018.
Sd/- Sd/-
[SUCHITRA KAMBLE] [R.S. SYAL]
JUDICIAL MEMBER VICE PRESIDENT
Dated, 28th February, 2018.
dk
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT (A)
5. DR, ITAT
AR, ITAT, NEW DELHI.
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