Sri Shyamal Gupta, Member

Aggrieved with the Order dated 30-08-2018, passed by the Ld. District Forum, Kolkata-II (Central) in CC/376/2017, whereby the complaint case has been decreed in favour of the Respondent, this Appeal is preferred by Oriental Bank of Commerce.

The dispute relates to alleged excess deduction of tax at source by the Appellant in respect of three Fixed Deposits held by the Respondent.

We have heard the parties and perused the documents carefully.

The case of the Appellant is that, in strict adherence of its policy, deductions were made from the maturity proceeds of the subject deposits.  Therefore, it was highly improper on the part of the Ld. District Forum to direct it to return the disputed sum to the Respondent along with some other reliefs.

On a reference to the Circular dated 22-07-2015, issued by the Corporate Strategy & Planning Department of the Appellant, it transpires that the said Authority directed its branch offices to deduct 10% from the interest amount of deposits in case the same exceeded Rs. 10,000/- during the relevant financial year.

In this case, the Respondent held 3 Fixed Deposits in his name.  While the total interest component of those deposits stood at Rs. 80,75,673/-, in terms of the aforementioned Circular, the Appellant was supposed to deduct a sum of Rs. 8,07,567/- from the maturity proceeds of three fixed deposits, it actually deducted a total sum of Rs. 9,46,530/-.  It is quite apparent, therefore, that an excess sum of Rs. 1,38,962/- (approx.) was deducted by the Appellant in contravention of the Circular being issued by its Corporate Strategy & Planning Department, which was a clear instance of deficiency in service on its part.

The impugned order being fully in order, it does not warrant our intervention.  Accordingly, we dismiss this Appeal with a cost of Rs. 20,000/- being payable by the Appellant to the Respondent.