Manager, Swami Ramanand BalikaInter collage, Farrukhabad v. ITO, Farrukhabad

TDS 22/AGR/2006 | 2003-2004
Pronouncement Date: 23-07-2010 | Result: Allowed

Appeal Details

RSA Number 2220321 RSA 2006
Bench Agra
Appeal Number TDS 22/AGR/2006
Duration Of Justice 3 year(s) 8 month(s) 9 day(s)
Appellant Manager, Swami Ramanand BalikaInter collage, Farrukhabad
Respondent ITO, Farrukhabad
Appeal Type TDS Appeal
Pronouncement Date 23-07-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 23-07-2010
Date Of Final Hearing 25-06-2010
Next Hearing Date 25-06-2010
Assessment Year 2003-2004
Appeal Filed On 13-11-2006
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH AGRA BEFORE SHRI R.K. GUPTA JUDICIAL MEMBER AND SHRI P.K. BANSAL ACCOUNTANT MEMBER TDSA NO.22/AGR/2006 ASST. YEAR: 2003-04 MANAGER VS. THE INCOME-TAX OFFICER (TDS) SWAMI RAMANAND BALIKA INTER COLLEGE FARRUKHABAD. FARRUKHABAD. (PAN : AGRS 11780 G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.K. AGARWAL ADVOCATE RESPONDENT BY: SHRI VINOD KUMAR JR. D.R. ORDER PER P.K. BANSAL A.M.: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 24.08.2006 BY TAKING THE FOLLOWING GROUNDS OF APPEA L:- (I) BECAUSE THE ORDER PASSED UNDER SECTION 201/201 (1A) IS BAD IN LAW AS PROPER PROCEDURE HAS NOT BEEN FOLLOWED. (II) BECAUSE THE DEFAULT IF ANY OCCURRED FOR VALI D AND REASONABLE/SUFFICIENT REASONS AND THE DEDUCTOR HAD NO MALAFIDE INTENTION. (III) BECAUSE INTEREST UNDER SECTION 201(1A) CANNOT BE CHARGED UNLESS THE TAX LIABLE TO BE DEDUCTED HAS BEEN PAID. (IV) BECAUSE THE TAX DEDUCTIBLE WAS PAID DIRECTLY B Y THE PAYEE AND THEREFORE THE DEFAULT IF ANY WAS PURELY VENIAL AND TECHNICA L 2 2. INITIALLY THE APPEAL WAS DISPOSED OF EX-PARTE VI DE ORDER DATED 20.07.2007. THIS ORDER WAS RECALLED BY ALLOWING THE MISCELLANEOUS APPLICATION OF THE ASSESSEE BEING M.A. NO.99/AGR/2007 VIDE ORDER DATED 17 TH NOVEMBER 2008. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS NOT DEDUCTED TAX ON THE SALARY ARREARS PAID TO SMT. MUNNI DEVI AT RS.7 72 116/- AND ALSO T HE SALARY AT RS.1 70 000/- PAID DURING THE YEAR UNDER CONSIDERATION. THE A.O. THEREFORE HEL D THE ASSESSEE THAT THE ASSESSEE IS IN DEFAULT IN RESPECT OF TAX NOT DEDUCTING AT SOURCE AND RAISED D EMAND OF SHORT DEDUCTION OF TAX A SOURCE AT RS.2 24 445/- INTEREST UNDER SECTION 201(1A) OF RS .67 792/-. BEFORE THE CIT(A) THE ASSESSEE CLAIMED THAT THE SAID PERSON HAS BEEN ASSESSED TO T AX AND HAS ALREADY PAID TAX IN HER RETURN FILED FOR THE YEAR UNDER CONSIDERATION AND THEREFORE NO TAX SHOULD BE COLLECTED FROM THE ASSESSEE. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW. WE ARE OF THE VIEW THAT IF THE TAX HAS ALREADY BEEN PAID BY SMT. MUNNI DEVI ON SUCH INCOME DURING THE YEAR UNDE R CONSIDERATION THE INCOME-TAX DEPARTMENT IS NOT JUSTIFIED TO RECOVER/COLLECT THE SAID AMOUNT OF TAX FROM THE ASSESSEE. THE LIABILITY FOR INTEREST CANNOT BE CONSIDERED TO BE N ON-EXISTENT ON ACCOUNT OF DEPOSIT OF TAX BY THE RECIPIENT AT A SUBSEQUENT OR LATER STAGE IN VIEW OF THE DECISION OF HONBLE RAJASTHAN HIGH COURT IN THE CASE OF CIT VS. RATHI GUM INDUSTRIES 213 IT R 98 (RAJ). WE THEREFORE SET ASIDE THE ORDER OF CIT(A) AND RESTORE BACK THIS MATTER TO THE FILE OF THE A.O. TO FIND OUT THE EXACT AMOUNT OF DEDUCTION OF TAX AFTER CONSIDERING THE AMOUNT PAID BY THE PAYEE IN HER TAX RETURN. WE MAY MENTION THAT NO AMOUNT OF TAX SHOULD BE RECOVERED F ROM THE ASSESSEE IN CASE THE PAYEE HAS PAID THE FULL TAX ON ARREARS OF THE SALARY AND ALSO INCO ME FROM SALARY DISBURSED TO HER DURING THE YEAR 3 UNDER CONSIDERATION. THE INTEREST SHOULD ALSO BE W ORKED OUT UNDER SECTION 201(1A) WITH REFERENCE TO THE TAX PAID BY THE RECIPIENT. THE A. O. IS ALSO DIRECTED TO GIVE REASONABLE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CL AIM SO THAT THE EXACT LIABILITY ON ACCOUNT OF THE ASSESSEE BEING IN DEFAULT UNDER CHALLENGE FOR INTER EST CAN BE WORKED OUT. 5. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 23.07.2010) SD/- SD/- (R.K. GUPTA) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: AGRA DATE: 23 RD JULY 2010. PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR ITAT AGRA BENCH AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL AGRA TRUE COPY