Income Tax Appellate Tribunal - Panji
The Assistant Commissioner Of Income ... vs Corporation Bank, Head Office., ... on 24 November, 2016
IN THE INCOME TAX APPELLATE TRIBUNAL
PANAJI BENCH, PANAJI
BEFORE SHRI GEORGE MATHAN, HON'BLE JUDICIAL MEMBER
ITA Nos. 93 to 101/PAN/2016
(Asst. Years : 2011-12, 2012-13 & 2013-14)
ACIT (TDS), Circle, Vs. 1) M/s. Syndicate Bank,
Panaji - Goa. Head Office Manipal,
Udupi District.
PAN No. AACCS 4699 E
2) M/s. Corporation Bank,
Head Office, P.B. 88,
Mangaladevi Temple Road,
Pandeshwar, Mangalore.
PAN No. AAACC 7245 E
3) M/s. Karnataka Bank,
Head Office Karnataka Bank
Building, Kodialbail,
Mangalore.
PAN No. AABCT 5589 K
C.O.Nos. 50 to 52/PAN/2016
(ITA Nos. 99 to 101/PAN/2016)
(Asst. Years : 2011-12, 2012-13 & 2013-14)
M/s. Karnataka Bank, Vs. ACIT (TDS), Circle,
Head Office Karnataka Bank Panaji - Goa.
Building, Kodialbail,
Mangalore.
PAN No. AABCT 5589 K
(Appellant) (Respondent)
2
ITA No. 93 - 101/PAN/2016
C.O.Nos. 50 - 52/PAN/2016
Assessees by : Shri S. Ananthan &
Mrs. Lalitha Rameswaran - CAs
(ITA Nos. 93-98/PAN/2016)
None
(ITA Nos. 99-101/PAN/2016)
(CO Nos. 50-52/PAN/2016)
Department By : Shri S. Srinivas - DR
Date of hearing : 13/07/2016.
Date of pronouncement : 13/07/2016.
ORDER
These are the appeals filed by the Revenue against the separate orders of Commissioner of Income Tax (Appeals), Mangaluru passed in appeal Nos.26 to 28, 01 to 03 & 23 to 25/MNG/CIT(A)MNG/14-15, all dated 24/03/2016 for the Assessment Years 2011-12, 2012-13 & 2013-14. Cross Objections are filed by the assessee in ITA Nos. 99 to 101/PAN/2016.
2. Shri S. Srinivas, Departmental Representative represented on behalf of the Revenue and Shri S. Ananthan & Mrs. Lalitha Rameswaran, CAs represented on behalf of the assessees.
3. The Departmental Representative submitted that the only issue in all these appeals were against the action of the Commissioner of Income Tax (Appeals) in cancelling the levy under section 201(1) & 201(1A) in respect of non-deduction of TDS, in respect of payments made by the banks to National Payment Corporation of India (NPCI) which is a company registered under section 25 of the Companies Act, 1956 and also got registration under section 12AA of the Income Tax Act, 1961. It was the submission that the Commissioner of Income Tax (Appeals) had followed the decision of the Hon'ble Karnataka High Court in the case of ITC Hotels Ltd. reported in (2015) 60 Taxmann.com 3 ITA No. 93 - 101/PAN/2016 C.O.Nos. 50 - 52/PAN/2016 346 (Kar.) wherein the Hon'ble High Court of Karnataka has held that "it is the recipient which would be chargeable to tax and if the recipient is not liable to pay tax, then the question of deduction of tax at source would not arise". It was fairly agreed by the Departmental Representative that the NPCI has filed its returns of income and has disclosed the receipts from the concerned banks and they have been also granted the benefit of exemption under section 12A. It was the submission that the order of the Commissioner of Income Tax (Appeals) was liable to be reversed.
4. In reply, Authorized Representative of the assessee submitted that there is no liability under section 201(1) insofar as the Assessing Officer has in an order under section 154 in August, 2014 cancelled the demand raised under section 201(1) and the issue was only of 201(1A). It was the submission that the interest levy under section 201(1A) was below ₹10 Lac as per 154 orders, in all the cases. It was the submission that the appeals were liable to be dismissed.
5. I have considered the rival submissions. A perusal of the grounds of appeal clearly shows that Revenue has not challenged the cancellation of levy of interest under section 201(1A) in any of its appeals. A perusal of the 154 orders clearly show that the Assessing Officer himself has cancelled the levy under section 201(1) and reworked the levy of interest under section 201(1A). In these circumstances, the grounds as raised by the Revenue, being infructuous, the appeals no more survives and the same stand dismissed in limini. Even taking a liberal view that the grounds are read to be as against cancellation of levy of interest under section 201(1A), as the same are below the tax effect of ₹ 10 Lac as prescribed by the CBDT for the purpose of filing of appeals before the Tribunal in F.No.279/Misc.142/2007-ITJ(Pt), Circular No. 21/2015 dated 4 ITA No. 93 - 101/PAN/2016 C.O.Nos. 50 - 52/PAN/2016 10/12/2015, appeals of the Revenue are liable to be dismissed. In these circumstances, on both these grounds, appeals of the Revenue stand dismissed.
6. The Cross Objections filed by the assessee-M/s. Karnataka Bank, is noticed to be is only in support of the orders of the Commissioner of Income Tax (Appeals). As the orders of the Commissioner of Income Tax (Appeals) stand confirmed, the Cross Objections filed by the assessee - M/s. Karnataka Bank for all the three assessment years stand dismissed.
7. In the result, appeals of the Revenue and the Cross Objections of the assessee are dismissed.
Order Pronounced in the Court at the close of the hearing on Wednesday, the 13th day of July, 2016 at Goa.
Sd/-
(GEORGE MATHAN) Judicial Member Dated : 13 t h July, 2016.
vr/-
Copy to:
1. The Assessee.
2. The Revenue.
3. The CIT
4. The CIT(A)
5. The D.R.
6. Guard file.
By order Assistant Registrar I.T.A.T., Panaji