CANARA BANK Vs. COMMISSIONER OF INCOME TAX (APPEALS)

JUDGEMENT

(1.) Heard Sri Abhinav Mehrotra, learned counsel for the petitioner-Bank; Sri Manish Goyal, Sri Gaurav Mahajan, Sri Praveen Kumar, Sri Krishna Agarwal & Sri Shubham Agarwal, learned counsel for the respondent-revenue.

(2.) The present and the connected matters have been filed by the different Banks against similar orders passed by the Commissioner of Income Tax (Appeals)-1, NOIDA under Section 154/250 of the Income Tax Act, 1961 (hereinafter referred to as the Act), dated 30.11.2015. For the sake of convenience, the present writ petition is being decided as the lead case. Challenge raised is to the jurisdiction of the Commissioner of Income Tax (Appeals)-1, NOIDA to pass any order under section 150/254 of the Act, in view of the order dated 02.12.2013 (order sought to be rectified) having merged in the order in the order of the Income Tax Appellate Tribunal dated 07.08.2015.

(3.) Admittedly, the petitioner in the normal course of its business as a banker had received deposits from the New Okhla Industrial Development Authority (NOIDA in short), for different terms at fixed/contracted rates of interest to be paid by the Bank. The interest that thus became due was also paid by the Bank to the NOIDA. On these interest payments made by the petitioner did not make any tax- deduction-at source (T.D.S. in short). The revenue claims such deduction should have been made before making payments of interest, to NOIDA. Such obligation is stated to have arisen by virtue of Section 194A of the Act. The petitioner bank on its part claimed to be exempt from that liability by virtue of Section 194 A(3)(iii)(f) of the Act, it having made payments to NOIDA, perceived to be an authority established under an enactment of the State of U.P.