Wp/100851/2016 Of Syndicate Bank v. The Income-Tax Officer (Tds)

IN THE HIGH COURT OF KARNATAKADHARWAD BENCH DATEBD THIS THE 2 DAY OF MARCH 2016 BEFORE THE HON’BLE MR.JUSTICE B.S.PATIL W.P.Nos.100851;854/2016(T;IT) BETWEEN syndicate Bank,Represented byShri B.E.Phani Kumar,Aged 48 years,senior Branch Manager,Maruti Galli Branch,1560, Maruti Galli,Belagavi — 590 OO1.PETITIONER (By Sri H.R.Kambiyavar, Sri B.S.N.Prasad, &Sri Prakash Badiger, Advs.) AND 1.The Income-Tax Officer (TDS),FK Commercial Complex,Opp. District Hospital,Dr. B.R.Ambedkar Road,Belagavi — 560 OO1. 2.The Commissioner of Income-Tax (Appeals),FK Commercial Complex,Opp. District Hospital,Dr. B.R.Ambedkar Road,Belagavi — 560 OO1. RESPONDENTS (By Sri Y.V.Raviraj, Adv.) These writ petitions are filed under Articles 226 & 227 ofthe Constitution of India, praying to direct the 2[$%]respondentto dispose of the appeals filed before him by the petitioneragainst the orders passed by the 1[/)]respondent on 18.02.2015under Section 201(1) ®& 201(1A) of the Act, vide TABLRSOOSOSS8SSOF for assessment years 2011-12 to 20(Annexures-M1 to M4) within such time as this Court may bepleased to. These writ petitions coming on for Orders, this day theCourt made the following:- ORDER 1.Heard the learned Counsel for petitioner and Mr. Raviraj,learned Counsel who has taken notice for the Revenue. oDPetitioner — Syndicate Bank has filed an appeal beforethe 2[$%]respondent — Commissioner of Income Tax (Appeals),Belagavi, challenging the order dated 18.02.2015 passed bythe l[/)]respondent under Section 201(1)(1A) of the Income TaxAct, 1961 (for short, ‘the Act’) for the assessment years 2011-12, 2012-13, 2013-14 & 2014-15. An application was filedseeking stay of the order passed by the 1[/)]respondent. TheAppellate Authority has rejected the said application. Aggrievedby the same, petitioner-Bank has approached this Court byfiling these writ petitions. D!several contentions have been urged on merits. One ofthe contentions urged by the petitioner is, that petitioner had contended that it could not be held to be an assessee in detaultunder the proviso to Section 201(1) of the Act as payee hadfiled returns of income declaring interest received from thepetitioner and had paid tax thereon. Indeed, it has urged thatcopy of the letter issued by the 1[/)]respondent in this regard isproduced along with the writ petition. It is, therefore, urgedthat if only the 2[$%]respondent had taken into considerationpayment of tax by the Visweswaraiah Technological University— payee, the Appellate Authority would not have passed theimpugned order. Learned Counsel for the petitioner furtherbrings to the notice of the Court, a judgment of the DivisionBench of this Court in W.A.Nos.60359-38/2015 disposed of o14.03.2016, wherein in similar circumstances, the DivisionBench has set aside the order passed by the AppellateAuthority rejecting the application filed for interim stay thathad been confirmed by the learned Single Judge in the writpetition and the matter has been remitted to the AppellateAuthority for re-consideration, keeping in mind the questionwhether the first proviso to Section 2O1(1) of the Act wasapplicable to the facts of the case. 4 4.In the present case also, facts involved are similar. Factthat Appellate Authority has not considered the certificateissued in Form-26A regarding payment of tax by the payee —Visweswaraiah Technological University is apparent. Indeed, acertificate issued and addressed to the l[/)]respondent on18.06.2015 in this connection is produced at Annexure-Walong with the writ petition. Therefore, the matter deservesfresh consideration by the Appellate Authority, keeping inmind the facts and circumstances and in the light of theproviso to Section 201(1) of the Act. 5.Hence, these writ petitions are allowed. Impugned orderis set aside. Matter is remitted for tresh consideration in theligsht of the observations made herein above. All othecontentions are kept open. 4 4.In the present case also, facts involved are similar. Factthat Appellate Authority has not considered the certificateissued in Form-26A regarding payment of tax by the payee —Visweswaraiah Technological University is apparent. Indeed, acertificate issued and addressed to the l[/)]respondent on18.06.2015 in this connection is produced at Annexure-Walong with the writ petition. Therefore, the matter deservesfresh consideration by the Appellate Authority, keeping inmind the facts and circumstances and in the light of theproviso to Section 201(1) of the Act. 5.Hence, these writ petitions are allowed. Impugned orderis set aside. Matter is remitted for tresh consideration in theligsht of the observations made herein above. All othecontentions are kept open. 6.Learned Counsel Mr. Y.V.Raviraj appearing for theRevenue is permitted to file memo of appearance within threeweeks from today. SD/-JUDGE KK