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TMI Blog2015 (2) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellate Order dated 09.06.2011, passed by the Commissioner of Income Tax (Appeals) I, Surat [CIT (A)], for the assessment year 2003-04, the appellant begs to file this appeal and raise the following grounds of appeal, which are independent of and without prejudice to each other. 1) As per the facts and circumstances of the case the order of the CIT(A) is erroneous in law. 2) The learned CIT(A) erred in failing to adjudicate all the grounds raised by the appellant in its appeal. 3) The learned Commissioner of Income Tax (Appeals), while adjudicating the appeal filed by the appellant, erred by not considering the submissions made by the appellant. As such the principles of natural justice are violated. 4) The learned Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was no tax deductible on such charges. However, Assessing Officer observed that assessee had not deducted TDS from the payments made to the State Bank of India as MICR charges during the relevant year. Assessing Officer stated that assessee should have deducted TDS on such payments u/s.194J of the Income Tax Act since such payments were made towards 'fees for technical charges' which was charged for providing managerial services. Assessing Officer has relied upon the decision of the Hon'ble ITAT, 'B' Bench, Ahmedabad in case of Canara Bank vs ITO, TDS-1, Surat (117 ITD 207) wherein, it was held that assessee was liable to deduct TDS u/s.194 J of the Act from the payment made to the State Bank of India as 'MICR cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed." Learned Authorized Representative also drew our attention to the decision of Hon'ble Punjab & Haryana High Court in case of Commissioner of Income-tax vs. Chief Manager, State Bank of India reported in [2012] 21 taxmann.com 506 (Punjab & Haryana), wherein it was held that in case of services rendered by bank in MICR cheque processing centre involves human intervention requiring examination of technical data, same would fall within definition of 'technical service' and for that purpose matter was remanded. In this background, learned Authorized Representative submitted that issue at hand was debatable at relevant point of time so penalty is not justified. We also find that ITAT, Ahmedabad 'C' Bench in case of Central Bank of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f CIT(A) on the issue. 5. After going through rival submissions and material on record, we find that word "reasonable cause" can be interpreted as applied to a person having an ordinary prudence. The expression "reasonable" gives an impression that prima facie, if a person of average intelligence has acted and under those circumstances the said action was at that point of time not infringed the settled law then it can be reasonably held that assessee was prevented by a "reasonable cause" under those circumstances not to act as prescribed or determined by a case law. We are aware that ignorance of law is not an excuse but at the same time, it is not practical that every tax payer should be aware about the latest development of tax law; whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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