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TMI Blog2013 (5) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... , we are of the considered opinion that the direction given in this regard by the Commissioner of Income-tax (Appeals), vide paragraph 5.2 of the impugned order, is fair and reasonable and the same does not call for any interference - Decided against revenue. - I. T. A.NO. 99/NAG/2012 to I.T.A. NO.105/NAG/2012 - - - Dated:- 1-5-2013 - SHRI R.K. GUPTA AND SHRI D. KARUNAKARA RAO, JJ. For the Appellant : Shri Prakash Mane, CIT For the Respondent : Shri R. Raja Gopalan ORDER There are seven appeals under consideration. All the seven appeals are filed by the Revenue against the common order of the Commissioner of Income-tax (Appeals)-II, Nagpur, dated December 22, 2011, for the assessment years 2005-06 to 2010-11, respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the Commissioner of Income-tax (Appeals) prevented the Assessing Officer from recovering the tax deduction at source made by the deductor. The Assessing Officer based on the provisions of section 201(1) and (1A) read with section 192 of the Act, raised the demand as per the table given below. Assessment Amount of TDS -demand by IT Dept. (Rs.) Interest under section 201 (Rs.) Total demand (Rs.) 2005-06 83,69,522 66,66,136 1,50,35,658 2006-07 81,80,231 56,96,760 1,38,76,991 2007-08 74,87,258 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deducted was accordingly kept in a separate account about which there is no dispute. The Commissioner of Income-tax (Appeals) considered the above submissions of the assessee and also considered the binding judgment of the hon'ble Bombay High Court, which upheld the validity of the said rule 3 of the Income-tax Rules, 1962, and confirmed the decision of the Assessing Officer in raising the demand in principle. Paragraphs 5 and 5.1 of the Commissioner of Income-tax (Appeals)'s order are relevant in this regard. However, considering the direction of the hon'ble High Court of Calcutta for opening a separate account and depositing the tax deducted at source, including interest, done by the assessee in the said separate account unti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said order is relevant in this regard. 8. We have heard both the parties, perused the orders of the Revenue authorities and the paper book placed before us, containing the relevant orders of the hon'ble Calcutta High Court as well as the Delhi Bench of this Tribunal. To start with the interim order of the hon'ble Calcutta High Court dated March 27, 2002, reads as under : I have only to add that if any deduction is made that will be kept in a separate account by the authority concerned until further orders of this court. 9. The decision of the Commissioner of Income-tax (Appeals), vide paragraphs 5 to 5.2 that lead to the issue of directions to the Revenue to await the finality of the judgment of the hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who are within the jurisdiction of the Bombay High Court, the said ruling has become final. Hence, the Assessing Officer's action in this regard is upheld. 5.2. However, I hasten to add that the appellant has quoted the order of the hon'ble High Court of Calcutta regarding non-depositing tax deducted at source and consequential interest thereon. The Assessing Officer has to wait till the finality of order of the Calcutta High Court for recovery of tax deducted at source and interest. It may not be out of place to mention that in respect of Power Grid employees, the Kolkata High Court in the case of Assistant Commissioner of Income-tax, Circle-3, Purnia has observed that 'respondent given liberty to apply for vacation and/or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent jurisdictional High court, i.e., the hon'ble Calcutta High Court. The assessee having acted under the court order, the Commissioner of Income-tax (Appeals) has rightly deleted the interest. His orders are upheld. 10. From the above extracts, the interim order of the hon'ble Calcutta High Court, it is evident that the assessee has opened a separate account for parking the tax deduction at source made by the assessee and the said direction is scrupulously followed by the assessee for all these assessment years. The said direction cannot be ignored in view of the jurisdictional High Court judgment. Therefore, we are of the considered opinion that the direction given in this regard by the Commissioner of Income-tax (Appeals), vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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