Ita/100051/2018 Of The Pr Commissioner Of Income Tax v. Sri_

IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 12[th] DAY OF SEPTEMBER, 2019 PRESENT THE HON’BLE MR.JUSTICE S.N. SATYANARAYANA AND THE HON’BLE MR.JUSTICE P.G.M. PATIL I.T.A.NO.100051 OF 2018 BETWEEN: 1. THE PR COMMISSIONER OF INCOME TAX, NAVANAGAR, HUBBALLI. NAVANAGAR, HUBBALLI. 2. JOINT COMMISSIONER OF INCOME TAX, RANGE-2, NAVANAGAR, HUBBALLI-580 025. …..APPELLANTS (BY SRI.Y.V.RAVIRAJ, ADVOCATE) AND : KARNATAKA VIKAS GRAMEEN BANK, HEAD OFFICE, CTS.NO.52/B1/A1/D.H.NO.133A, HO BUILDING, BELGAUM ROAD, DN KOPPA, DHARWAD-580 008, PAN:AAAAK 6324Q. ……RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT, 1961 AND PRAYED TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH “A” IN ITA.NO. 684/BANG/ 2014, DATED 25.04.2018 AND CONFIRM THE ORDER PASSED BY THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, HUBBALLI FOR THE ASSESSMENT YEAR 2010-11 AND TO PASS SUCH OTHER SUITABLE ORDERS AS THIS COURT DEEMS FIT TO GRANT IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL IS COMING ON FOR ADMISSION, THIS DAY, S.N.SATYANARAYANA, J, MADE THE FOLLOWING : JUDGMENT The Assessing Authority along with the Competent Authority has come up in this appeal under Section 260A of the Income Tax Act, 1961 (‘Act’ for short) impugning the order of the Tribunal, in setting aside the order of assessing authority and appellate authority and consequently remanding the same for fresh consideration by the assessing authority. 2. The sole respondent herein is assessee before the 2[nd] appellant herein whose income tax returns for the assessment year 2010-2011 was taken up for consideration under Section 143(3) of the Act, and disposed of by order dated 18.03.2013. In the said order expenses shown towards payment of interest is disallowed under Section 40(a) (ia) of the Act to the tune of Rs.28,98,43,076/-. The disallowance is on the ground that, the forms submitted by the recipients of interest, filed in Form No.15G and 15H were not produced before the assessing authority. 3. The said order of assessing authority was subjected to challenge before the Commissioner of Income Tax (Appeals), Hubballi in ITA No.CIT(A)06/HBL/2013-14/AY 2010-11. It is seen that the appeal which was filed by the respondent-assessee also came to be dismissed in confirming the finding of the Assessing Officer by the order of appellate authority dated 26.02.2014. The same was taken up in appeal before the Income Tax Appellate Tribunal, Bengaluru Bench ‘A’, where the appeal by the assessee in ITA Nos.673 & 674/Bang/2014 (Assessment years 2009-10 and 2010-11) came to be allowed by order dated 25.04.2018 wherein the Tribunal, while allowing the appeal set aside the order of Assessing Authority as well as the order of Appellate Authority. While doing so, remanded the same for fresh consideration by the assessing authority with certain observations. The said order of remand by the Tribunal is in challenge by the Assessing Authority and the Competent Authority in this appeal. 4. Heard the learned standing counsel for the appellants. The order of remand by the Tribunal is in the light of the Judgment rendered by Division Bench of this Court in the matter of Commissioner of Income-Tax v. Sri Marikamba Transport Co. reported in [2015]231 Taxman 484(Kar). Wherein the coordinate bench of this Court has held that though filing of Form Nos.15G and 15H by recipient of interest is mandatory before the persons from whom they seek payment of interest without deducting tax at source. However filing of same by the person disbursing interest to the authorities is procedural and not mandatory. 4. Heard the learned standing counsel for the appellants. The order of remand by the Tribunal is in the light of the Judgment rendered by Division Bench of this Court in the matter of Commissioner of Income-Tax v. Sri Marikamba Transport Co. reported in [2015]231 Taxman 484(Kar). Wherein the coordinate bench of this Court has held that though filing of Form Nos.15G and 15H by recipient of interest is mandatory before the persons from whom they seek payment of interest without deducting tax at source. However filing of same by the person disbursing interest to the authorities is procedural and not mandatory. 5. It is further observed that in the event the assessing authority decides to look into the same, it could be called for while taking up the same for assessment. In the instant case, though the assessing authority entertained doubt regarding the respondent herein collecting such form before disbursing the interest, there is nothing on record to demonstrate that the assessee was called upon to produce forms to substantiate the deductions which they have made. 6. It is in this background that order of the Assessing Authority as well as Appellate Authority is rightly set aside by the Tribunal and the same is remanded back to the Assessing Authority for fresh consideration. On going through the order impugned, this Court is of the considered opinion that the order of remand is just and proper on factual matrix of the case. Therefore, question of interfering with the same in this appeal does not arise; in as much as no substantial question of law arises for consideration in this appeal. Accordingly, appeal filed by the revenue is hereby dismissed. SD/- JUDGE SD/- JUDGE CKK/-