Complaint filed on: 16-03-2016                                                      Disposed on: 25-01-2017

BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL FORUM,

OLD DC OFFICE COMPOUND, TUMAKURU-572 101

CC.No.47/2016

DATED THIS THE 25^th DAY OF JANAURY 2017

PRESENT

SMT.PRATHIBHA. R.K. BAL, LLM, PRESIDENT

SRI.D.SHIVAMAHADEVAIAH, B.A, LLB, MEMBER

SMT.GIRIJA, B.A., LADY MEMBER

Complainant: -

Nanjundappa

S/o. late Balanna,

Aged 70 years,

R/o. Panchavati Nilaya,

Madhugiri Main Road,

Yallapura, Arakere post,

Tumakuru city

(By advocate Sri.J.M.Mutharayappa)

V/s

Opposite party:-       

1. Asst. General Manager,

State Bank of Mysore,

Centralized Pension Processing Centre, Manjusha Building, 2^nd floor, Bejai, Mangalore-04

2. The Manager, State Bank of Mysore, Sira Gate Branch, Tumakuru
3. The Manager, State Bank of Mysore, Yallapura branch, Tumakuru city.     

(OP No.1 to 3-by advocate Sri.Vazeer Ahamed.K.H)

ORDER

SMT.PRATHIBHA. R.K. PRESIDENT

This complaint is filed this complainant against the OPs, under Section 12 of the Consumer Protection Act. The complainant prays to direct the OPs to pay the amount of Rs.93,680=00 deducted from Oct.2015 to Feb.2016 together with interest @ 18% p.a. from the date of deduction out of his pension account to the complainant, apart from Rs.20,000=00 towards general damages for mental shock and agony suffered by the complainants, in not settling the above amount, in the interest of justice and equity.

2. The brief facts of the complaint is as under.

           The complainant is a retired Professor and he is having his pension account no.54025103484 and he is getting pension of Rs.38,054=00. The complainant is income tax payee and he possess PAN card No.AASPNO867A.

          The complainant further submitted that, the 1^st OP has issued a notice to the complainant through 2^nd OP on 17-8-2015 stating that the complainant has not submitted Income Tax returns and not obtained PAN Card and they have to deduct the amount from his pension account towards TDS. On receipt of the said notice, the complainant has given reply on 28-8-2015 stating that he is possessing PAN card and he has submitted income tax return and other documents and requested them not to deduct any amount towards TDS out of his pension. Inspite of that, the 2^nd OP has deducted Rs.18,736=00 out of his pension of Rs.38,054=00 since October 2015 and intimated the complainant that the said amount is transferred to CBDT account. Since the complainant being a pensioner and income tax payee has filed necessary income tax returns to the income tax department as required under law upto 20-15-2016.

          The complainant further submitted that, on 4-12-2015, the 2^nd OP has forced to get his pension account to Yallapura branch to suit his convenience. Accordingly, the complainant has got his pension account transferred to 3^rd OP. Prior to transfer of his account, the 2^nd OP has deducted Rs.18,736=00 p.m. out of the total pension towards TDS. The complainant has given requisition to the 2^nd OP seeking for rectification of his pension account by obtaining the deduction amount from CBDT account and he has complied with the requirement sought for by the income tax department. But the 2^nd OP has given evasive answer and dodging the same one or the other reasons. Then the complainant has approached the 3^rd OP seeking for rectification of his pension account and the 3^rd OP has intimated the complainant that it is the 2^nd OP branch, who deducted the amount towards TDS and the 2^nd OP has to look into matter and regularize his pension account. The 2^nd OP has deducted Rs.93,680=00 from the complainant’s pension account. Inspite of repeated requests and demands to the OP to set-right the pension account, the OPs have dodged the same one or the other reasons and thereby the OPs have shown deficiency in service. Hence the present complaint is filed.

3. After service of notice, the OPs have appeared through their counsel and filed common objections contending interalia as under.

The complaint is not maintainable either in law or on facts and it is liable to be dismissed in limine. The averments made in the complaint are partly admitted and other averments made in the complaint are denied as false and not within the knowledge of these OPs.

The OPs further submitted that, as per the guidelines issued by the Income Tax Department and the Government of India, the OPs bank are under the obligation of deducting the TDS amount of income tax from the account of the pensioners whose pension amount of exceeds Rs.3,00,000=00 per annum in the financial year. It is the duty of the pension account holders to submit the permanent account number (PAN) Card and investment details to the OPs bank well in time so as to avoid from deduction of TDS income tax from the account of the pensioner. The OPs bank has issued a notice i.e. on 17-8-2015 to the complainant well in time requesting the complainant to submit those records such as copies of the PAN Card and investment details to the 2^nd OPs bank. But, the complainant failed to submit those documents to the 2^nd OP bank well in time. As such, the OPs left no alternative except to deduct the TDS amount from the account of the complainant. Hence, there is no question of deficiency of service on the part of the OPs at any point of time. As such, the remedy left open to the complainant is to seek for refund of the said TDS income tax amount from the concerned income tax department as per law. The OPs are not liable to pay any compensation to the complainant as claimed in the complaint, since there is no fault or deficiency of the OPs towards the complainant in any manner. Hence it is prayed to dismiss the complaint with cost, in the interest of justice and equity.

4.  In the course of enquiry into the complaint, the complainant and OPs have filed their affidavit evidence reproducing what they have stated in their respective complaint and version.   The complainant has produced documents, which were marked as Ex-C1 to C12. The OPs have produced the documents, which were marked as Ex-R1 to R2. We have heard the arguments of both parties and perused the documents of both parties and posted the case for order.

5. Based on the above materials, the following points will arise for our consideration.

1. Whether there was deficiency in service on the part of the OPs as alleged by the complainant?
2. What Order?  

6. Our findings on the above points are;

          Point no.1: In the Negative

          Point no.2: As per the final order below.

REASONS

          7. On perusal of the pleadings, affidavit evidence, objections of the OPs and documents produced by both parties, it is an admitted fact that, the complainant is a retired professor and he is having pension account in the 2^nd OP bank and he is getting pension amount of Rs.38,054/-. The complainant alleged that, the 2^nd OP has wrongly deducted the TDS amount of Rs.18,736=00 out of his pension amount of Rs.38,054=00 since Oct.2015. The 2^nd OP has deducted total amount of Rs.93,680=00 from the complainant’s pension account.

          8. On the contrary, the OPs have submitted that, they have issued notice dated 17-08-2015 to the complainant to submit the records such as copies of PAN card and Investment details to the 2^nd OP bank, but the complainant has failed to submit the details before 15-9-2015. Hence they have deducted the TDS amount from the complainant’s pension account. The OPs have further submitted that, the remedy left open to the complainant is to seek for refund of the said TDS Income Tax amount from the concerned income tax department as per law. Hence, there is no deficiency of service on the part of the OPs.

          9. On perusal of the entire documents, it is seen that, the OP have issued notice to the complainant on 17-8-2015, in the notice, it is clearly mentioned as under:

“Notice for recovery of TDS on pension paid for FY 2015-16. As you are aware, it is mandatory for the pension paying bank to recover TDS on pension paid at the applicable rate as per Income Tax Act. As such, you are hereby advised to submit your PAN Card details (along with photo copy), income tax circle, ward number and the investment details for FY 2015-16 to your pension drawing branch before 15-9-2015. These details are required to effect TDS on pension paid by the bank for the FY 2015-16 and remittance to Government account. Please notice that, the recovery of the applicable TDS will be accordingly made from the pension payable to you for the month of the Oct.2016. The bank will not be responsible for excess recovery/deduction at higher rate of TDS on account of your not furnishing the required information well in time. Please also note that in case the PAN details are not provided by you before the stipulated period, the bank will be forced to remit the TDS amount recovered without mentioning the PAN details resulting in the amount so remitted remaining unaccounted in the books of CBDT-Income Tax office in the absence of PAN details resulting unaccounted in the books of DBCT- Income Tax office in the absence of PAN details resulting in avoidable problems in reconciliation/getting refund, if any subsequently”.   

          10. On perusal of the entire documents of both parties, the complainant has failed to establish that, the complainant has submitted the details of PAN card and investment details to the 2^nd OP bank before 15-9-2015 from the complainant’s pension account. Further it is seen that, the complainant wrote a letter to the 2^nd OP bank and demanded to refund the deducted TDS amount, but nowhere, it is mentioned that the complainant has submitted the PAN card and investment details to the 2^nd OP bank and there is no acknowledgment or endorsement to prove that, the complainant had submitted the PAN card and investment details before 15-9-2015 to the 2^nd OP bank. Further the OPs have deducted the TDS amount from the complainant’s pension account for Rs.18,736=00 per month as per Ex.C10 and the total amount of Rs.93,680=00 as per circular No.2/2015-16 dated 19-6-2015 issued to the 2^nd OP bank, it reads as under:

                   “3. PAN importance of permanent account number:

1. ……
2. In those cases where PAN is not furnished by the recipient, the rate of TDS would be higher of 20% or the applicable TDS rate as provided in Annexure-!”
3. ….”

11. Hence, on perusal of the account statement, the OPs have right to deduct the 20% pension amount from the complainant’s account. Moreover, the complainant has not proved by producing believable documentary evidence that, there is negligence and deficiency in service on the part of the OPs. Further, the remedy left open to the complainant to approach the income tax department for refund of TDS amount. Hence we come to conclusion that, the there is no negligence and deficiency of service on the part of the OPs and accordingly we answer this point in the negative. In the result, for the foregoing reasons, we proceed to pass the following order.

ORDER

The complaint is dismissed.

          Supply free copy of this order to both parties. 

          (Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open forum on this, the 25^th day of January 2017).

LADY MEMBER                      MEMBER                       PRESIDENT