BANK OF BARODA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal filed under Section 260A of the Income Tax Tax, 1961 (hereinafter referred to as 'the Act') is directed against the order dated 24.2.2012 passed by the Income Tax Appellate Tribunal, Patna Bench, Patna (hereinafter referred to as 'the Tribunal') in ITA No. 48 (Pat) of 2011 for the assessment year 2008-09, whereby 'the Tribunal' has dismissed the appeal of the appellant to confirm the order passed by the Commissioner of Income Tax (Appeals) dated 3.3.2011 who in turn has confirmed the order passed by the Assessing Officer for levy of interest on the default by the appellant in deduction of tax at source on the interest paid by the appellant on the deposits made by the Official Liquidator appointed by the Patna High Court on behalf of the Company in liquidation, namely, Rohtas Industries Limited in exercise of powers vested under Section 201 of 'the Act'.

(2.) The appellant is a nationalized Bank whose business premises was surveyed by the respondent authorities under Section 133 of 'the Act' on 18.12.2007 and in which course documents relating to Tax Deducted at Source (hereinafter referred to as 'the TDS') were examined. It is in course of survey of such documents that it transpired that the appellant Bank had failed to deduct tax at source in respect of interest generated on the deposits made by the Bihar Industrial Area Development Authority (BIADA), the Infrastructure Development Authority (IDA), the Bihar State Housing Board and the Official Liquidator of Patna High Court. A demand was raised which was inclusive of tax as well as interest payable thereon to the tune of Rs.48,89,749/- which demand was subsequently modified on an application filed under Section 154 of 'the Act' to exclude such demand in respect of 'the BIADA' and 'IDA'. A copy of the order is at Annexure 1 to the appeal. The respondent Assessing Authority, however, confirmed the demand in respect of the Bihar State Housing Board as well as the Official Liquidator of Patna High Court by the order dated 9.11.2010, a copy of which is at Annexure 2 to the appeal. It is feeling aggrieved by the order dated 9.11.2010 of the Assessing Officer that the appellant filed an appeal before the Commissioner of Income Tax (Appeals) who on consideration of facts accompanying the appeal, allowed the same to the extent of the liabilities attributable to the Bihar State Housing Board. However, in so far as non-deduction of tax at source on interest generated on the deposits made by the Official Liquidator of Patna High Court is concerned, the order of the Assessing Officer was upheld. The appeal was allowed in part by the order passed on 3.3.2011 enclosed at Annexure 3.

(3.) In view of the position so settled under the orders of the statutory authorities referred to above that a demand for Rs.12,63,589/- was raised which was inclusive of the element of tax as well as interest, a copy of which is at Annexure 5 to the appeal. The appellant feeling aggrieved moved in second appeal before the Income Tax Appellate Tribunal which appeal has been dismissed by the judgment and order impugned dated 24.2.2012 confirming the order passed by the Commissioner of Income Tax (Appeals) and feeling aggrieved the appellant is before this Court.