2013 (11) TMI 678 - AT - Income Tax

Tax Tribunal grants Department's appeal on rectification under section 200A of I.T. Act

ITO, TDS Ward 51(5), Delhi Versus ICICI Bank Ltd. (Formerly The Bank of Rajasthan Ltd.)

The ITAT DELHI allowed the Department's appeals, setting aside the directions given by the CIT(A) for rectification of orders under section 200A of the ... Power of CIT(A) to give directions to AO for rectification when no appeal is filing u/s 246A against the order u/s 200A - computerized intimation u/s 200A – short deduction / short payment/ late payment and interest thereon. – Held that :- Reliance has been placed on the judgment in the case of ITO vs. Govt. Co- Ed Secondary School, New Delhi [2013 (11) TMI 666 - ITAT DELHI], wherein it was held that CIT(A) has no power to issue direction to AO for rectification when there is no appeal - Decided in favor of revenue. Issues: Department's appeal against CIT(A)'s directions on rectification of order u/s 200A of the I.T. Act.Analysis:1. The appeals were filed by the Department against the orders of ld. CIT(A)-XXX, New Delhi concerning the computerized processing order u/s 200A for the financial year 2011-12 for short deduction/short payment/late payment and interest thereon.2. The ld. CIT(A) observed that there is no appeal provision u/s 246A for filing appeals against the order u/s 200A of the I.T. Act. However, he provided directions to the AO to rectify the orders within two months by issuing necessary notices u/s 154 of the Act to the assessee and rectifying the orders as per law.3. The Department contended that the directions given by CIT(A) were erroneous and beyond his jurisdiction. The grounds of appeal included issues such as the AO's limited power to modify e-TDS returns, the time limit of two months for rectification, and the onus to file correction statements lying with the deductor assessee.4. The Tribunal, in a similar case, had expunged the directions given by CIT(A) as no appeal provision existed against the intimation issued u/s 200A. The Tribunal emphasized that an Appellate Authority can only act within the statutory provisions and cannot provide directions without the necessary legal backing.5. Considering the precedent set by the Tribunal, the ITAT DELHI expunged the directions given by ld. CIT(A) in the present appeals as they were identical to the directions previously deemed invalid.6. Consequently, the Departmental appeals were allowed in line with the Tribunal's decision, and the directions provided by the ld. CIT(A) were set aside.This detailed analysis covers the issues raised in the Department's appeal against the directions given by the ld. CIT(A) regarding the rectification of orders u/s 200A of the I.T. Act, providing a comprehensive understanding of the judgment and its implications.