Income Tax Appellate Tribunal - Jaipur
The Branch Manager, Indian Overseas ... vs Income Tax Officer (Tds), Ajmer on 10 May, 2018
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@In ITA No. 202/JP/2018
fu/kZkj.k o"kZ@Assessment Year : 2009-10.
The Branch Manager, cuke The Income Tax Officer,
Indian Overseas Bank, St. Anslem School Vs. (TDS),
Campus, Madan Gopal Marg, Ajmer.
Kaiser Ganj, Ajmer.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/TAN No. JDHI 01134 A
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@ Assessee by : None (A/D on record)
jktLo dh vksj ls@ Revenue by: Shri A.S. Nehra (Addl.CIT)
lquokbZ dh rkjh[k@ Date of Hearing : 07.05.2018.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 10.05.2018.
vkns'k@ ORDER
PER VIJAY PAL RAO, JM :
This appeal by the assessee is directed against the order dated 21st November 2017 of ld. CIT (A), Ajmer arising from the order passed under section 201/201(1A) of the I.T. Act for the assessment year 2009-10. The assessee has raised the following grounds :-
" 1. The learned commissioner of Income Tax (Appeals) grossly erred in law and on facts in confirming disallowance/non considering of Declaration Form 15G/H and confirming also demand of TDS.
2. The order confirmed by the learned Commissioner of Income Tax (Appeals) is bad in law, based on surmises & conjectures, arbitrary & capricious, injudicious against the settled principles of law, as such the same deserved to be amended."2 ITA No. 202/JP/2018
The Branch Manager, Indian Overseas Bank, Ajmer.
2. None has appeared on behalf of the assessee despite the notice of service as per the acknowledgement on record and further on the last date of hearing the assessee sought adjournment which was adjourned for today i.e. 07.05.2018. Accordingly, we propose to hear and dispose off the appeal ex parte.
3. We have heard the ld. D/R and carefully perused the relevant material on record. The AO proceeded to treat the assessee as assessee in default for non deduction of tax in respect of the interest payment made by the assessee to 25 persons. After considering the reply of the assessee, the AO finally determined the short-fall of tax deducted at source of Rs. 4,45,828/- in respect of interest of Rs. 53,75,786/- paid to 20 persons. After computing the interest @ 1% per month, the AO finally raised a demand of Rs. 8,73,823/- vide order dated 30th March, 2016 passed under section 201/201(1A) of the Act. The assessee challenged the action of the AO before ld. CIT (A) but could not succeed.
4. We find that the assessee has claimed that it has obtained Form No. 15G/15H from the recipients of interest in question and, therefore, the assessee cannot be held as assessee in default for want of deduction of TDS under section 194A of the Act. During the appellate proceedings before the ld. CIT (A), the assessee further filed the details of the persons to whom the interest was paid and contended that some of the persons are senior citizens and, therefore, their income do not exceed the maximum amount which is not chargeable to tax. The ld. CIT (A) called for a remand report from the AO in which the assessee furnished the details of the persons who had already paid the tax as well as the persons who were senior citizens and, therefore, the maximum amount of income not chargeable to tax in case of senior citizens was Rs. 2,25,000/- and, therefore, the interest paid to the 3 ITA No. 202/JP/2018 The Branch Manager, Indian Overseas Bank, Ajmer.
extent of the said amount does not require deduction of TDS under section 194A when these persons have already submitted Form No. 15G/15H. We find that despite all these details, the ld. CIT (A) has confirmed the action of the AO in para 4.3 of his order as under :-
" 4.3. I have gone through the assessment order, statement of facts, grounds of appeal, remand report and rejoinder carefully. It is seen that there is no dispute about the fact that interest of Rs. 53,75,786/- was paid by the appellant without deducting the tax at source u/s 194A. the appellant has contended that since it had obtained Form No. 15H from the recipients of the interest, therefore it did not deduct the tax at source at the time of crediting of interest of Rs. 53,75,786/- to 20 persons mentioned at page no. 3 & 4 of the order. The AO did not accept the contention of the appellant because the interest credited in the account of above referred person was more than Rs. 1,50,000/-. Therefore, according to the AO, the assessee was "assessee in default in respect of for non deduction of tax at source on the interest of Rs. 53,75,786/- paid to the above referred 20 person". I am in agreement with the opinion of the AO. As the interest credited in the account of above mentioned two persons was more than Rs. 1,50,000/-, therefore the appellant was required to deduct the tax at source at the time of crediting the interest of Rs. 53,75,786/- to the above referred persons. Hence, the demand of Rs. 8,73,823/- raised by the AO in respect of non deduction of tax at source (Rs.4,45,828) u/s 201 and interest on the non deduction of tax at source (Rs.4,27,995) u/s 201(1A) is hereby confirmed."
Thus it is clear that the details furnished by the assessee before ld. CIT (A) as well as in the remand proceedings regarding the payment of tax by the recipients of 4 ITA No. 202/JP/2018 The Branch Manager, Indian Overseas Bank, Ajmer.
interest as well as the senior citizens in whose case the maximum amount not liable to tax is not Rs. 1,50,000/- but Rs. 2,25,000/-. Accordingly in the facts and circumstances of the case, we find that the matter has not been examined properly by the ld. CIT (A). Accordingly we set aside the matter to the record of the AO for proper verification and examination of the details and facts as produced by the assessee during the remand proceedings and then adjudicate the issue as per law. Needless to mention that the assessee may be given an opportunity of hearing.
5. In the result, appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 10/05/2018.
Sd/- Sd/-
(foØe flag ;kno) (fot; iky jkWo ½
(VIKRAM SINGH YADAV ) (VIJAY PAL RAO)
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Jaipur
Dated:- 10/05/2018.
Das/
vkns'k dh izfrfyfi vxzfs "kr@Copy of the order forwarded to:
1. The Appellant- The Branch Managter, Indian Overseas Bank, Kaiser Ganj, Ajmer.
2. The Respondent -The ITO (TDS) Ajmer.
3. The CIT(A).
4. The CIT,
5. The DR, ITAT, Jaipur
6. Guard File (ITA No. 202/JP/2018) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar 5 ITA No. 202/JP/2018 The Branch Manager, Indian Overseas Bank, Ajmer.