Complainant by filing this complaint has submitted that he has a saving bank account with the op bearing No.459922401 since 1987.  Complainant is also deposited 4 nos. of RIP with the op, firstly in the year 2007.  On the maturities of the said RIPS, were renewed on 07.03.2010 and further it was renewed on 07.03.2013 and at the time of last renewal of the aforesaid date, op issued the Roll over advices and a schedule containing the details of said 4 nos. of RIP is 879003319, 879004404, 879004175 and 879004551.

          Fact remains complainant as usual practice submitted declaration in Form No. 15G under the Income Tax Act, 1961 as required by the Banking Authority against RIP A/C No on 12.03.2010, 10.02.2012, 30.04.2012, 03.05.2012, 21.03.2013 and 02.04.2013 and same were deposited without any protest by the op.

          Subsequently on 13.09.2012 complainant submitted the KYC Form and the same has been acknowledged by the op.  but on 14.12.2012 another term deposit (RIP) of Rs.2,00,000/- for one year was made and at that point of time the complainant enquired while he was informed that no TDS was deducted as he had already submitted Form No.15G in respect of the aforesaid fixed deposits.  On 08.03.2013 after receiving the Roll over advices for renewal against maturity of the RIP deposits as mentioned astonishingly he found that an amount of Rs. 4,156/- has been deducted from the maturity amount and initially complainant was informed that the said income tax for non submission of Form No. 15G form on 12.03.2013 the complainant lodged a complaint with the branch manager of the op and asked for refund of the deducted amount and it is subsequent to state that on 07.03.2010 at the time of renewal of the aforesaid fixed deposits wrongfully an amount of Rs.1,040/- was deducted.  But afterwards upon corrections of their mistakes the same amount was refunded and was credited by the op to the complainant’s savings account No. 459922401 on 07.06.2010.

          By a letter dated 24.04.2013 the op replied to the complainant’s letter dated 12.03.2013 stating that the op could not locate any of the said 15G Forms in their system and manual records and so op could not carry forward for uploaded information details in their system.  Although the op acknowledged 15G Form on 21.03.2013 and 02.04.2013 but in their reply dated 24.04.2013 stating that they have been provided 15G Form only on 30.04.2013.  for such incorrect reason and faulty system and laches on the part of op, the complainant should not suffer loss and injury and from a bare perusal of the said reply it does not contemplates that the complainant had not submitted the said 15G Form.

          On receipt of the above letter dated 24.04.2013 from the op on 06.05.2013 complainant lodged a complaint with the office of the Banking Ombudsman for refund of the deducted amount.  By a letter dated 17.07.2013 communicated by Secretary of the Banking Ombudsman, informed that the complaint has been rejected after due consideration.  Further it is submitted that as per op’s reply it is found that their plea is that “as per record in their system PAN card particulars has not ported” and as a consequence the TDS has been deducted from the maturity amount.

          In the above circumstances complainant has submitted that Income Tax on accrued interest has already been paid to the income tax department in respect of the said RIP deposits as would be evident from the return filed with the income tax department and copies of the said Income Tax Return Verification for the Assessment year 2010-11, 2011-12 and 2012-2013 are annexed.  However op even after that deduction the same without any reason for which they have their negligent and deficient in manner and for which complainant has suffered a lot and in the above circumstances complainant has prayed for redressal and when op refused to act as per law.

          On the other hand the bank by filing written statement submitted that TDS of Rs.4,156/- for the year 2010-2011 on the interest income on the fixed deposit which was deducted from the account of the complainant was credited to the Income Tax account for the purpose of assessment of Income Tax and op is bound under the Income Tax Act and so such an act and action was taken by the op.  As such the complainant cannot claim any deficiency of service on the part of the op and the op rightly and according to its application deducted the TDS and credited the sum with the appropriate authority.

          It is further submitted that Banking Ombudsman, RBI, Kolkata decided the matter on the basis of the complaint of the complainant and came to a conclusion that the complainant failed to reveal any deficiency of service on the part of the op.  so, the complaint before the Ombudsman Authority was rejected.  Further op has not consumed the amount but it was deposited in the Income Tax Department.  So there was no question of laches on the part of the op in respect of the transmission of the said amount to the Income Tax Authority, as such the claim of the complainant for refund of the said sum of Rs.4,156/- is not tenable.

          Further op has submitted that the letter dated 24.04.2013 is a matter of record.  Op has clarified that 15G was deposited on 30.04.2012 not on 30.04.2013 and op has also not deducted any TDS for 2012-13 based on the same.  Hence, the complainant’s allegation is that incorrect reason and faulty system is baseless.  So, there is no deficiency on the part of the op and further submitted that no TDS was deducted in the year 2013-14.  Lastly it is submitted that TDS was credited with the Income Tax Authority, as such, the complainant if he is entitled to refund may get the said refund including the alleged sum of Rs.4,156/- from the Income Tax Authority and in the above circumstances, the present complaint should be dismissed.

                                                   Decision with reasons

          On proper consideration of the entire argument as advanced by the complainant and the op it is found that the admitted fact is that deduction of Rs.4,156/- was made by the Banking Authority as TDS.  But it is equally true that as per law Banking Authority is bound to deduct TDS after each financial year and truth is that that amount is not in the custody of the Bank.  But it is in the custody of the Income Tax Authority and when complainant is an Income Tax Assessee, then invariably he may file an application before the Income Tax along with income tax return for assessment and in that case complainant shall have to get such relief and it is settled principal of law that in respect of TDS by the Bank cannot be treated as negligent and deficient manner of service because it must be done otherwise the Bank shall be punished as TAN Holder.  No doubt TDS which was deducted by the bank and credited to the account of the income tax authority is not negligence on the part of the Bank.  But it might be for some technicalities in submission of 15G Form by the complainant and for not non-receipt of the op/Bank it was deducted but for that reason complainant’s interest has not been hampered because complainant is a PAN Card holder and income tax assessee, he prays for adjustment that amount for the said financial year and may show it as TDS from his RIP and in that case he shall have to get the benefit of the tax from the Income Tax Authority and as per mandatory direction of the Income Tax Authority and Act, Bank is bound to do that by deducting the same and crediting the same in the income tax account.  But bank has not committed any error and it is no doubt proved that no negligence and deficiency on the part of the Bank Authority is proved by the complainant.  In the above circumstances we are convinced that there is no merit in this complaint. 

          Accordingly, the complaint fails.

          Hence, it is

                                                                ORDERED

          That the complaint be and the same is dismissed on contest without any cost against the contested op.