TMI Blog2021 (2) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to deduct tax have duly reflected and shown the entire interest income in their respective return of income for AYs 2014-15 and 2015-16 and has remitted the tax on it, then in such a scenario the assessee bank cannot be held to be an assessee in default. However, according to the AO, the assessee did not fulfill the conditions specified as per the first proviso to section 201 of the Act. In the light of the discussion, we set aside the order of the Ld. CIT(A) and remand the issue back to the file of the AO and direct the appellant bank to furnish the documents as required under first proviso to section 201 of the Act and if the assessee files the same before the AO; and if the AO is satisfied that both the customers have shown their inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled the appeals on time andthe Ld. DR after having gone through the contents of the application for condonation of delay does not object for condoning the delay, therefore, we condone the delay and admit the appeals for hearing. 3. Brief facts (for AY 2014-15) of the case are that the AO notes that the assessee is a Government Bank engaged in banking activities and it takes deposits from customer and against such deposit, the customers earn interest on their deposit. The AO notes that a survey operation was conducted on 18.03.2016 at the Union Bank of India, Burdwan Main Branch with a view to verify the deduction of TDS against the interest credited/paid to the customer. The AO acknowledges that the customers filed Form 15G/15H and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him on behalf of the assessee and by this non-attendance, he was of the opinion that assessee was not interested in pursuing the appeal and, therefore, dismissed the appeal ex parte qua the assessee. Aggrieved, the assessee is before us. 4. We have heard rival submissions and gone through facts and circumstances of the case. We note that the assessee is a Public Sector bank situated at Burdwan and is providing banking facility to semi urban and rural people in and around Burdwan. After the survey having taken place in its premises on 18.03.2016, the AO found that two customers have been given interest on their deposit without deducting tax at source in violation of section 194A of the Act. According to the AO, the appellant bank ought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which he may incur, be deemed to be an assessee in default in respect of such tax: [Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a [payee] or on the sum credited to the account of a [payee] shall not be deemed to be an assessee in default in respect of such tax if such [payee] (l) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g tax from the payer(assessee bank) on the same income by treating the payer to be an assessee in default for shortfall in its amount of tax deducted at source. For this proposition of law, we rely on the decision of Hon ble Supreme Court in Hindusthan Co-cola Breverages Ltd. Vs. CIT reported in 293 ITR 226 (SC). In the light of the aforesaid discussion and taking into consideration the assertion given by the Ld. AR that both the customers against whom the AO has found that the assessee bank failed to deduct tax have duly reflected and shown the entire interest income in their respective return of income for AYs 2014-15 and 2015-16 and has remitted the tax on it, then in such a scenario the assessee bank cannot be held to be an assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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