The Pr. Commissioner of Income-tax, Hubballi / Joint Commissioner of Income-tax, Range-2, Hubballi v. Karnataka Vikas Grameen Bank
[Citation -2019-LL-0912-55]

Citation 2019-LL-0912-55
Appellant Name The Pr. Commissioner of Income-tax, Hubballi / Joint Commissioner of Income-tax, Range-2, Hubballi
Respondent Name Karnataka Vikas Grameen Bank
Court HIGH COURT OF KARNATAKA CIRCUIT BENCH AT DHARWAD
Relevant Act Income-tax
Date of Order 12/09/2019
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags payment of interest
Bot Summary: 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. The said order of assessing authority was subjected to challenge before the Commissioner of Income Tax, Hubballi in ITA No.CIT(A)06/HBL/2013- 14/AY 2010-11. 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 came to be allowed by order 4 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. 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. 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. 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.


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