TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 945
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....mstances of the case, the ld. AO erred in passing the assessment order on the assessee -in default (deductor bank) for two Assessment Years jointly through a single Assessment Order which is in violation of the provisions of the Income Tax Act. Thus, the assessment order passed u/s 201/201(A) of the Act is unjustified and illegal and therefore, the same deserves to be quashed and set-aside. 3. Without prejudice to the GOA 1 & 2, under the facts and circumstances of the case the ld. AO erred in raising the demand & Hon'ble CIT erred in confirming the demand on the assessee-in default (deductor bank) during the pendency of the SLP No. 16734/2023 & stay order wherein the assessee bank is bound to not to make any recoveries from the employee. Thus, the assessment order passed u/s 201/201(1A) of the Act deserves to be quashed and set aside. 4. Without prejudice to the GOA 1 to 3, under the facts and circumstances of the case, the ld. AO & Hon'ble CIT erred in not considering the fact that the assessee deductor bank is bound by the orders of the Hon'ble High Court & Apex Court during the matter in pendency and therefore, taking any action by them would have resultant to contempt of c....
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....ank preferred appeal before the ld. CIT (Appeals). The ld. CIT (Appeals) relying on the judgment of Hon'ble Apex Court in the case of State Bank of India vs. Assistant Commissioner of Income-tax (2022) 144 taxmann.com 131 dated 04.11.2022, dismissed 28 appeals including the appeal of the assessee vide its order dated 21.03.2024. Hence, the bank has preferred the present appeal before us. 3. Before us, the ld. A/R of the assessee submitted his written submission which are reproduced as under :- "1. On the facts and circumstances of the case the ld. AO erred in initiating the proceedings against the bank as the spot verification has been done in the present case without following the income tax provisions. The proceedings initiated by the ld. AO and the concluded assessment thereafter by the ld. AO was illegal and void-abinitio and therefore not a curable defect u/s 292BB. Therefore, the Order u/s 201/201(A) dated 19.02.2015 deserves to be set aside and quashed. "The humble assessee hereby submits that as per the assessment order dt. 19.02.2015, the spot verification was conducted on 19.02.2014 & 22.03.2014 at the Office of Dy. General Manager, AO- 1. State Bank of India, A-5, N....
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....ome-tax authority may enter any place of business or profession referred to in sub-section (1) only during the hours at which such place is open for the conduct of business or profession and, in the case of any other place, only after sunrise and before sunset. (3) An income-tax authority acting under this section may,- (i) if he so deems necessary, place marks of identification on the books of account or other documents inspected by him and make or cause to be made extracts or copies therefrom, (ia) impound and retain in his custody for such period as he thinks fit any books of account or other documents inspected by him: Provided that such income-tax authority shall not- (a) impound any books of account or other documents except after recording his reasons for so doing; or [(b) retain in his custody any such books of account or other documents for a period exceeding ten days (exclusive of holidays) without obtaining the approval of the Chief Commissioner or the Director General or the Director General therefor, as the case may be,] (ii) make an inventory of any cash, stock or other valuable article or thing checked or verified by him, (iii) record the statement of a....
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....fore such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year. Although Clause 2A was inserted by the Finance (No.2) Act, 2014, w.e.f. 1.10.2014. "(2A) Without prejudice to the provisions of sub-section (1), an incometax authority acting under this sub-section may for the purpose of verifying that tax has been deducted or collected at source in accordance with the provisions under sub-heading B of Chapter XVII or under sub-heading BB of Chapter XVII, as the case may be, enter, after sunrise and before sunset, any office, or any other place where business or profession is carried on, within the limits of the area assigned to him, or any place in respect of which he is authorised for the purposes of this section by such income-tax authority who is assigned the area within which such place is situated, where books of account or documents are kept and require the deductor or the collector or any other person who may at that time and place be attending in any manner to such work,- (i) to afford him the necessary facility to inspect such books of account or other documents as he may require and which may be available....
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....sment order on the assessee-in dfault (deductor bank) for two assessment years jointly through a single assessment order which is in violation of the provisions of the Income Tax Act. Thus, the assessment order passed u/s 201/201(1A) of the Act is unjustified and illegal and therefore, the same deserves to be quashed and set-aside. In reference to this GOA-2, the humble assessee hereby submits the reply that the Assessment Year is defined u/s 2(9) means the period of twelve months commencing on the 1st day of April every year i.e. a period of twelve months beginning from April and ended by March. Chapter XIV (Section 139 to 158) deals with the procedure for assessment and it specifically deals with assessment for a period of twelve months and not more than tax except for the block assessment. Likewise section 201 also enumerates the assessment for 12 months period only i.e. assessment year not more than 12 months period by a single assessment order. It is further stated that all the appellate/demand/rectification proceedings are dealt with assessment year basis only i.e. for twelve months period only. In none of the situation assessment for two years is specified by the law. ....
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.... to make any recoveries from its employees during the pendency of the SLP. Even the ld. CIT (Appeals) in its order dated 21.03.2024 in Para 5.10(viii) has apprised the facts in relation to the stay of operation by the Hon'ble Apex Court vide interim order dated 28.08.2023. Further, the Hon'ble CIT Appeals has specifically mentioned in his order 5.23(i) 'The recovery of tax must be stayed by the AO till the stay of the Apex Court is vacated.' Thus the ld.CIT (A) duly aware of the facts of the case but do not understand the bank's position. Considering the same, the order made by ld. AO is required to be quashed or set aside or keep in abeyance till the disposal of Writ Petition by the Hon'ble Apex Court. " 4. On the other hand, the ld. D/R supported the orders of the lower authorities and submitted that the order of the ld. CIT (A) be upheld. 5. We have heard the rival submission and perused the material on record. We note from the submission of Ld. AR for the assessee that on the issue of spot verification in this case under section 133A was conducted without obtaining proper authorization from the Competent Authority and therefore, the spot verification so conducted by the....