The Income Tax Officer (TDS), Bareilly v. State Bank Of India Main Branch, Raibareli

ITA 608/LKW/2014 | misc
Pronouncement Date: 10-11-2014 | Result: Allowed

Appeal Details

RSA Number 60823714 RSA 2014
Bench Lucknow
Appeal Number ITA 608/LKW/2014
Duration Of Justice 3 month(s) 30 day(s)
Appellant The Income Tax Officer (TDS), Bareilly
Respondent State Bank Of India Main Branch, Raibareli
Appeal Type Income Tax Appeal
Pronouncement Date 10-11-2014
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 10-11-2014
Date Of Final Hearing 21-10-2014
Next Hearing Date 21-10-2014
Assessment Year misc
Appeal Filed On 11-07-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI. A. K. GARODIA ACCOUNTANT MEMBER ITA NO.608/LKW/2014 ASSESSMENT YEAR:2009-10 INCOME TAX OFFICER (TDS) BAREILLY V. STATE BANK OF INDIA MAIN BRANCH RAIBARELI PAN/PAN:LKNS06254D (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. O. N. PATHAK D.R. RESPONDENT BY: SHRI. A. BHARADWAJ CHIEF MANAGER DATE OF HEARING: 21 10 2014 DATE OF PRONOUNCEMENT: 10 11 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) INTER ALIA ON VARIOUS GROUNDS WHICH ARE AS UNDER:- 1. THE LD. CIT (APPEAL) BAREILLY HAS ERRED IN FACTS AND LAW BY QUASHING THE ORDERS OF THE ITO (TDS) MORADABAD U/S 201(1)/201(1A) AND ALLOWED RELIEF OF RS.14 63 860/- ON THE GROUND THAT HE HAD NO TERRITORIAL JURISDICTION OVER THE ASSESSEE. TAN OF THE DEDUCTOR WAS LYING ON THE CODE OF ITO (TDS) MORADABAD WHO PASSED THE ORDER IN THIS CASE. THE ORDERS ARE PASSED ONLINE ON THE ITD APPLICATION AND ONLY THE PERSON HAVING TAN ON HIS CODE CAN PASS SUCH ORDER. 2. WHILE DOING SO THE LD. CIT (A) HAS ERRED FURTHER IN OVERLOOKING THE FACT THAT ORDER U/S 201 (1) WAS PRINTED OUT OF THE SYSTEM (AUTOMATIC ITD SOFTWARE) AND ONCE ORDER IS PROCESSED BY :- 2 -: COMPUTERIZED SYSTEM THE A.O. HAS NO OPTION BUT TO SIGN IT AND SEND TO THE DEDUCTOR. 3. WHILE DOING SO IN (1) ABOVE THE LD. CIT (A) HAS FURTHER ERRED IN OVERLOOKING THE FACT THAT NO ORDER ON THIS IS PASSED BY ANY OTHER A.O. AND THE SHORTFALL IN TDS WAS THEREFORE RIGHTLY BROUGHT TO TAX BY ITO(TDS) MORADABAD. 4. THAT WHILE DOING SO IN (1) THE CIT (A) HAS FURTHER MORE ERRED IN DIRECTING THE ASSESSING OFFICER OF THE CORRECT JURISDICTION TO RAISE DEMAND AND BRING DEFAULT OVERLOOKING THE FACT THAT NO FRESH ORDER CAN BE PASSED BY ANY OTHER AO U/S 201(3)(1) OF THE I.T ACT BEYOND THE PERIOD OF TWO YEARS. 2. DURING THE COURSE OF HEARING THE LD. D.R. HAS INVITED OUR ATTENTION TO THE FACT THAT ON ACCOUNT OF NON-DEDUCTION OF TDS THE ASSESSEE HELD TO BE IN DEFAULT UNDER SECTION 201(1) AND INTEREST UNDER SECTION 201(1A) OF THE INCOME-TAX ACT 1961 (HEREINAFTER CALLED IN SHORT THE ACT') WAS ALSO CHARGED AGAINST WHICH AN APPEAL WAS FILED BEFORE THE LD. CIT(A) WITH THE SUBMISSION THAT TDS WAS DEDUCTED AND PAID IN TIME BUT ON ACCOUNT OF MISMATCH PROPER VERIFICATION WAS NOT DONE AND ASSESSEE WAS HELD TO BE IN DEFAULT AND INTEREST UNDER SECTION 201(1A) OF THE ACT WAS CHARGED. INSTEAD OF VERIFYING THE SAME THE LD. CIT(A) HAS SET ASIDE THE ORDER TO THE ASSESSING OFFICER AS THE ORDER PASSED BY HIM IS NOT MAINTAINABLE FOR LACK OF JURISDICTION. HE HOWEVER DIRECTED THE INCOME TAX OFFICER (TDS) MORADABAD TO BRING THE DEFAULTS IF ANY OF THE APPELLANT TO THE ASSESSING OFFICER CONCERNED WHO RIGHTLY HOLDS THE JURISDICTION OVER THE APPELLANT. HE DIRECTED THAT THE COMPETENT ASSESSING OFFICER MAY ADOPT AND INITIATE PROCEEDINGS AS ARE AVAILABLE IN LAW. 3. THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE FACT THAT TDS WAS DEDUCTED AND PAID IN TIME BUT ON ACCOUNT OF MISMATCH THE :- 3 -: DUE CREDIT WAS NOT GIVEN. WHEN THE MATTER WAS BROUGHT BEFORE THE LD. CIT(A) THE LD. CIT(A) HAS REMANDED THE MATTER BACK TO THE INCOME TAX OFFICER WITH A DIRECTION TO MAKE NECESSARY VERIFICATION AND TO ADJUDICATE THE ISSUE INSTEAD OF VERIFYING THE FACTS HIMSELF. 4. HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM VERIFICATION FROM THE CIT (TDS) IT HAS BEEN BROUGHT TO OUR NOTICE THAT IF ANY ERROR IS CAUSED IN DEPOSITING THE TAX OR CREDIT OF TDS ON ACCOUNT OF MISMATCH OR FOR ANY OTHER REASON RECTIFICATION CAN BE SUBMITTED ONLINE BY THE ASSESSEE ONLY AND NOT BY ANY THIRD PERSON. NOWADAYS THE RETURNS ARE BEING SUBMITTED ONLINE WITH THE CENTRAL AGENCIES OF THE DEPARTMENT AND IF ANY MISMATCH IS THERE DUE TO ANY REASON THE CREDIT OF TDS IS NOT GIVEN TO THE ASSESSEE AND DEMANDS ARE BEING RAISED. NO DOUBT FOR THE LAPSE ON THE PART OF THE DEPARTMENT THE ASSESSEE SHOULD NOT SUFFER BUT SIDE BY SIDE WHEN RECTIFICATIONS ARE TO BE MADE ONLINE WITH THE SYSTEM BY THE ASSESSEE ONLY RECTIFICATION IS NOT POSSIBLE BY THE INCOME TAX OFFICER (TDS) OR THE ASSESSING OFFICER. UNDER THESE CIRCUMSTANCES REMANDING THE MATTER BACK TO THE INCOME TAX OFFICER (TDS) OR THE ASSESSING OFFICER WOULD NOT SERVE ANY PURPOSE. WE ARE THEREFORE OF THE VIEW THAT WHENEVER ANY DEMAND IS RAISED ON ACCOUNT OF MISMATCH OR ANY OTHER ERROR THE ASSESSEE SHOULD SUBMIT RECTIFICATION ONLINE AND GET THE ACKNOWLEDGEMENT. EVEN THEN IF IT IS NOT DONE THE ASSESSEE SHOULD DO THE RECTIFICATION UNDER THE GUIDANCE OF THE DEPARTMENTAL OFFICER. THIS SYSTEM WAS GENERATED FOR THE BENEFIT AND CONVENIENCE OF THE ASSESSEE BUT SOME TIME ON ACCOUNT OF MISMATCH CREDIT OF TDS IS NOT BEING GIVEN TO THE ASSESSEE BUT FOR THIS THE ASSESSEE SHOULD SUBMIT NECESSARY RECTIFICATION ONLINE. IN THIS BACKDROP WE ARE OF THE VIEW THAT IN THE INSTANT CASE IT IS NOT CLEAR WHETHER THE ASSESSEE HAS SUBMITTED RECTIFICATION ONLINE OR HAS DIRECTLY APPROACHED THE LD. CIT(A). UNDER THESE CIRCUMSTANCES WE ARE OF THE CONSIDERED OPINION THAT LET THE MATTER BE SENT BACK TO THE LD. CIT(A) WITH A DIRECTION THAT ASSESSEE WILL SUBMIT A :- 4 -: RECTIFICATION ONLINE AFTER DOING NECESSARY CORRECTIONS AND EVEN THEN IF MISMATCH IS NOT RECTIFIED AND CREDIT IS NOT GIVEN THE LD. CIT(A) SHOULD GET IT DONE UNDER HIS SUPERVISION HAVING VERIFIED THE RECORDS FROM THE ASSESSEE WITH REGARD TO DEDUCTION OF TDS. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE LD. CIT(A) WITH A DIRECTION TO GET IT RECTIFIED UNDER HIS SUPERVISION IN TERMS INDICATED ABOVE. 5. IN THE RESULT APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:10 TH NOVEMBER 2014 JJ:2210 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR