IN THE CONSUMER DISPUTES REDRESSAL FORUM, ALAPPUZHA
Monday the 28th day of March, 2016.
Filed on 17.10.2014
Present
1) Smt. Elizabeth George (President)
2) Sri. Antony Xavier (Member)
3) Smt. Jasmine D (Member)
in
CC/No.265/2014
Between
Complainant: Opposite party:-
Jayaprakash M V The South Indian Bank Ltd,
Smitha Bhavan SIB Building, CCB Road,
Kavunkal P O, Ponnadu, Near Muncipal Office,
Alappuzha – 688 538 Alappuzha – 688001
O R D E R
SRI.ELIZABETH GEORGE (PRESIDENT)
The case of the complainant is as follows:
The complainant is working in Kuwait from year 1975 onwards and was maintaining different kind of accounts with reasonable accounts of deposit with South Indian Bank, Alappuzha Branch for a long time. In the month of July 2013 while browsing internet banking site it noticed that the bank has deducted some money from the complainant’s NRO accounts as TDS. As per the rule immediately after the deduction of TDS they will have to give the complainant TDS certificate, so that he can file income tax return. When the complainant asked the opposite party to give him the details of deduction they have given him the details and while checking statements it is found that they have shown the tax rate applicable is 10%. But they have deducted more money from his account for the years 2009-2012 for the NRO SB Account. The tax rate applicable is shown as 5.15%. But they deducted more than that for the year 2006-2008. After that the complainant asked the opposite party to refund the illegally deducted excess TDS but the opposite party failed to do so. Thereafter the complainant sent several reminding letters to the opposite party and made complaints to the Chief General Manager, Executive Director and Senior Managers etc. On 09.10.13 the opposite party has sent him a cheque for 19625.76 been the excess TDS collected for the year 2009-2010 and 2010-2011. Since the opposite party offered for the TDS which is less than the TDS deduction, the complainant sent back the cheque. Later on 08.01.2014 opposite party sent another cheque for Rs.30,002/- . The complainant sent back this cheque also since the total excess deduction was Rs. 34,851.93/- plus interest. Thereafter the opposite party sent another cheque for Rs.4,830/- which was sent back by the complainant. The opposite party failed to give full details of excess deduction and TDS certificate. Alleging deficiency in service on the part of the opposite party the complaint is filed directing the opposite party to give Rs. 34,851.93 plus interest which he lost due to the illegal excess deduction done by the opposite party along with compensation and cost.
2. The version of the opposite party is as follows:-
TDS for the financial year 2009-2012 was collected from NRO deposit to the complainant at rate 12.88% instead of 10%. It is understood that the customer is working in Kuwait, whereas in finacle the country code was wrongly entered was UAE during the time of Account opening by the Petitioner which is a fault on his part alone. The correct country code modification was done by the branch only after March 2012. The opposite party had persuaded the customer to submit IT returns and claim for refund but he was not willing to file the IT returns. After contacting the Head office the opposite party paid Rs. 30002.16 and Rs. 4830/- on 08.01.2014 and 11.01.2014 which is the actual TDS collected by the opposite party. Both the pay orders were returned, as the complainant demanded details the demand from the opposite party without any rational thinking. There is no deficiency in service on the part of the opposite party.
3. The complainant was examined as PW1 and documents produced were marked Ext.A1 to A20. The opposite party examined ass RW1 and one witness as examined as. Ext.A11(1) is the letter dated 25.1.2014 sent to the Executive Director of the opposite party bank. RW2. The documents produced were marked as B1 to B4.
4. The points for considerations are:-
a) Whether there is any deficiency in service on the part of the opposite party?
b) If so, reliefs and costs?
5. The complainant was maintaining different kinds account s of deposit with the opposite party for a long time. Ext.A1 is the passbook of the complainant which shows that he had opened his account with the opposite party in the year 1997. According to the complainant in the month of July, 2013 he noticed that the opposite party bank has deducted some money from the complainant’s NRO account as TDS. Thereafter he demanded the opposite party to give the details of deduction. When he came to know that opposite party deducted more than the applicable rate, he demanded to refund the excess amount taken by the opposite party. The copy of the letter dated 20.8.2013, 11.9.2013, 6.11.2013 and 11.12.2013 addressed to the Manager, South Indian Bank, Alappuzha show that the complainant had made so many efforts for getting the excess tax taken by the opposite party. Ext.A11 is the letter dated 5.1.2014 sent by the complainant to the Chief General Manager of opposite party bank and Ext.A11(1) is the letter dated 25.1.2014 sent to the Executive Director of the opposite party bank. Thereafter complainant made a complaint before the banking Ombudsman, and banking Ombudsman directed the opposite party to furnish detailed reply to the complainant explaining the position, giving the account base details of the excess amount of TDS deducted and refund the amount if he desires so, if not he may be issued with necessary TDS certificates so that he can prefer a claim with the Income Tax Department for refund of the amount. In spite of the said direction by the Hon’ble Ombudsman on 18.6.2014 the opposite party sent only the details of the excess amount of TDS deducted from the various fixed deposit accounts of the complainant. As per the details the total amount of total TDS deducted is Rs.34,824.93. According to the complainant he has not received TDS certificates as per the direction of the banking Ombudsman. The letter dated 11.9.2014 and 30.9.2014 were sent by the complainant to the opposite party reminding them for providing the TDS certificates. According to the opposite party, they paid Rs.30,002.16 and Rs. 4830/- on 8.1.2014 and 11.1.2014 which is the actual TDS collected by them to the complainant and those were returned by the complainant. Complainant returned this cheques since the opposite party failed to give him interest and compensation. From the evidence on record, it is clear that complainant made so many efforts to get back the excess TDS collected from his account. As per the direction of the banking Ombudsman, opposite party gave a detailed statement which shows that the opposite party admits that the excess amount deducted is Rs.34,851.93/- (Rupees thirty four thousand eight hundred and fifty one and ninety three paise only). Considering the delay and latches from the part of the opposite party in settling the dispute this Forum finds that in addition to the excess amount deducted in the name of TDS from the account of the complainant, the opposite party is liable to pay interest calculated at the rate of 10% per annum to the excess TDS deducted for each financial year starting from 31.03.2009 till the date of payment. The delay committed by the opposite party in returning the excess TDS collected from the account of the complainant and also the failure on the part of the opposite party in giving the TDS certificates to the complainant amounts to defect and deficiency in service on the part of the opposite party.
In the result, complaint is allowed. The opposite party is directed to pay the excess TDS deducted from the account of the complainant along with interest calculated at the rate of 10% per annum for each financial year with effect from 31.03.2009 till the date of payment. The opposite party is further directed to pay an amount of Rs.5000/- (Rupees five thousand only) towards compensation and Rs.2000/- (Rupees two thousand only) towards costs of this proceedings to the complainant. The order shall be complied within one month from the date of receipt of this order.
Dictated to the Confidential Assistant transcribed by her and pronounced in Open Forum on this the 28th day of March, 2016.
Sd/- Smt. Elizabeth George (President)
Sd/- Sri. Antony Xavier (Member)
Sd/- Smt. Jasmine D (Member)
APPENDIX:
Evidence of the Complainant:-
PW1 - Jayaprakash. M.V. (Witness)
Ext.A1 - Passbook
Ext.A2 - Photocopy of the bank receipt dated 27.02.2008
Ext.A3 - Photo copy of the registered letter dated 28.2.2015 regarding the a/c No.
0001050000033303
Ext.A43(2) - Photo copy of the registered letter dated 28.2.2015 regarding the other a/c Nos.
Ext.A4(1)&(2) - Statement during the period from 01.04.2006 to 31.03.2013 (Photo copy)
Ext.A5(1) to (3)- Country wise DTAA rate chart for interest (Photo copy)
Ext.A6 - Letter dated 9.10.2013 (Photo copy)
Ext.A7 - Letter dated 6.11.2013 (Photo copy)
Ext.A8 - Photo copy of the registered letter dated 11.12.2013 (5 pages)]
Ext.A9(1) & (2)- Reminder letters dated 11.9.13 and 20.8.13
Ext.A10 - Registration of complaints against the branches (Photo copy)
Ext.A11(1) &(2)- Letters dated 25.1.14 & 5.1.2014 (Photo copy)
Ext.A12 - Letter dated 18.6.14 (Photo copy)
Ext.A13 - Photo copy of the registered letter dated 30.6.14 (2 pages)
Ext.A14(1)&(2)- Registered letters dated 30.9.14 and 11.9.14 (Photo copy)
Ext.A15 - Photo copy of the Form 16A
Ext.A16 - Letter dated 27.8.14 (Photo copy)
Ext.A17 - Form 26 AS – Assessment year 2009-10 (Photo copy)
Ext.A18 - Letter dated 19.9.2013 (Photo copy)
Ext.A19 - Form 26 AS – Assessment year 2011-12 (Photo copy)
Ext.A20 - Income Tax Refund Advice dated 3.5.2015 (Photo copy)
Evidence of the opposite party:-
RW1 - Cyriac Jacob.K. (Witness)
RW2 - K. Krishnakumar (Witness)
Ext.B1 - Letter dated 27.8.2014 (Photo copy)
Ext.B2 - Letter dated 18.6.2014 (Photo copy)
Ext.B3 - Form 16A (Photo copy)
Ext.B4 - Cheque dated 8.1.14 for Rs.30,002/- (Photo copy)
// True Copy //
By Order
Senior Superintendent
To
Complainant/Opposite parties/SF
Typed by: - Pr/-
Comprd by :-
