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Dy. Commissioner of Income Tax (TDS) , Dehradun Versus State Bank of India

2017 (11) TMI 679 - ITAT DELHI

TDS u/s 194A - payment of interest In Site Restoration Fund Account - whether deposits in Site Restoration Fund Account are made for a fixed period and which carry interest as applicable to time deposit - Held that:- As decided in assessee's own case in view of the provisions of section 194A(3)(vii) it has held that the provisions of section 194A(1) have no application to the assessee's case. Thus, once the ITAT has given a finding of fact that the SRF a/c is not a time deposit, the AO's action .....

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e in default within the meaning of section 201(1). In view of the fact it cannot be held to be an assessee in default u/s 201(1), the question of any liability for interest u/s 201(1A) simply does not arise. - Decided against revenue - ITA No. 4458/Del/2016 - Dated:- 10-11-2017 - Sh. N. K. Saini, AM And Sh. Joginder Singh, JM For The Assessee : Sh. Sanjiv Sapra, Adv. For The Revenue : Sh. S. S. Rana, CIT DR ORDER Per N. K. Saini, AM: This is an appeal by the department against the order dated 27 .....

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set stated that this issue is squarely covered in favour of the assessee vide order dated 18.07.2014 in ITA Nos. 3936 to 3938/Del/2013 for the assessment years 2010-11 to 2012-13 respectively, in assessee s own case (copy of the said order was furnished which is placed on record). 4. The ld. CIT DR although supported the order of the AO but could not controvert the aforesaid contention of the ld. Counsel for the assessee. 5. We have considered the submissions of both the parties and perused the .....

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/2013 in the case of DCIT(TDS), Dehradun Vs. State Bank of India, Tel Bhawan, Dehradun and ITA No. 3924, 3194 and 3195/Del/2013 in State Bank of India, Tel Bhawan, Dehradun Vs. DCIT (TDS), Dehradun for the A.Yrs. 2010-11, 2011-12 and 2012-13 pronounced by the Hon'ble ITAT vide a common judgement dated 18.7.2014. On going through the judgment it is seen that the Hon'ble Tribunal has held as under: 17. We have considered the rival submissions and perused the record. Admittedly the assessee .....

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ffect for subsequent years. Moreover, principles of rejudicata are not applicable to income-tax proceedings. 17.2 Section 194A mandates the payer of interest to deduct TDS at the time of credit of such interest to the account of the payee. However, by virtue of sub-section (3), provisions of sub-section (1) are not applicable, inter alia, as per clause (vii) in the case of interest credited or paid in respect of deposits (other than time deposits made on or before 1st day of July 1995). Therefor .....

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usiness of prospecting for, or extraction or production of petroleum or natural gas or both in India. Relevant portion reads as under: [Site Restoration Fund 33ABA. (1) Where an assessee is carrying on business consisting of the prospecting for, or extraction or production of, petroleum or natural gas or both in India and in relation to which the Central Government has entered into an agreement with such assessee for such business, has before the end of the previous year- (a) deposited with the .....

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the assessee in accordance with, and for the purposes specified in, a scheme framed by the Ministry referred to in clause (a) (hereafter in this section referred to as the deposit scheme), The assessee shall, subject to the provisions of this section, be allowed a deduction (such deduction being allowed before the loss, if any, brought forward from earlier years is set off under section 72) of- (i) a sum equal to the amount or the aggregate of the amounts so deposited; or (ii) a sum equal to twe .....

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ted in the special account or the Site Restoration Account by way of interest shall be deemed to be a deposit. (3) Any amount standing to the credit of the assessee in the special account or the Site Restoration Account shall not be allowed to be withdrawn except for the purposes specified in the scheme or, as the case may be, in the deposit scheme. (5) Where any amount standing to the credit of the assessee in the special account or in the Site Restoration Account is withdrawn on closure of the .....

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ccount in a previous year in which the business carried on by the assessee in no longer in existence, the provisions of this section shall apply as if the business is in existence in that previous year. 17.5 Explanation 1 to clause (vii) of sub-section (3) to section 194A clearly contemplates time deposit to mean deposits which are repayable on the expiry of fixed periods. 17.6 Ld. Sr. counsel has referred to the various forms, forming part of the Schemes, which have been noted in his argument f .....

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efore, when period of deposit is left to the eventuality of arising of purposes for withdrawal as contemplated u/s 33ABA (3) then, we fail to appreciate as to how It cart come within the ambit of fixed period. The definition/meaning of time deposit' is given in section 194A and, therefore, it cannot be assigned a general meaning as submitted by Id. CIT(DR). There is no room for any interpretation/construction in tax laws, when there is no ambiguity in the language of section. When the plain .....

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eme to ensure that ONGC withdraws the squired amount only for utilizing the amount as per the scheme. In order to clarify this aspect, we produce hereunder certain clauses from the Scheme. 17.8 Clauses 8&9 of the Scheme read as under:- 8 Withdrawal and utilization of the amount deposited: A depositor shall be entitled to withdraw from the amount standing to the credit of the account only such amount as is necessary to meet any expenditure to be incurred by him on the expiry or termination of .....

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depositor shall be entitled to withdrawn the whole or any part of the amount standing to the credit of the account by making an application in Form E, duly authorized by the Ministry of Petroleum & Natural Gas or any agency authorized by the Ministry of Petroleum & Natural Gas in this behalf. (2) On receipt of the request for withdrawal, the deposit office shall, a soon as may be, pay the amount to the depositor through a credit o the designated account. 17.9 SRF deposit continues to run .....

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, and out of profits derived from the business referred in sub paragraph (3) of paragraph 1 above. (4) Shall account shall be maintained in Indian Rupees. 17.10. This clearly shows that SRF Deposit may be made in one lump sum or installments not exceeding four installments in each financial year. This plea is further fortified by clause 6 of the scheme which contemplated for computing interest and reads as under: 6 Interest: (1) Subject to sub-paragraph (2) the deposit shall carry interest at th .....

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ited to the account and shall not be payable to the depositor except as part of withdrawal for utilization in terms of paragraph 9 or part of a payment of balance on closure of account in terms of paragraph 12. (4) The gross interest credited to the account in a financial year shall be evidenced by a certificate issued in- Form C, by the deposit office and the amount of such gross interest shall be deemed to be a deposit made by the depositor under this scheme in that financial year. 17.11 Sub-c .....

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