2021 (11) TMI 1087 - AT - Income Tax

Tribunal Corrects Interest & Fees, Recalls Order for TDS Credit | Appeal Grounds for Reconsideration

The Tribunal corrected the amounts of interest income, commitment fees, and agency fees in the order dated 4th December 2020 as per the applicant's ... Rectification of mistake u/s 154 - amounts with respect to interest income, commitment fees and agency income - HELD THAT:- We deem it fit and proper to rectify the quantum of interest income, commitment fees and agency fees. Ordered, accordingly. The impugned order dated 4th December 2020 stands rectified accordingly. Ground nos. 9 and 10 remained indisposed off - DR fairly agrees that the above grounds have remained to be disposed of, but, as for the arguments as merits his suggestion is that these submissions can only be taken up for hearing when recalled matter comes up for hearing when recalled matter comes up for hearing. Learned counsel for the assessee does not oppose the said suggestion. Having regard to the rival submissions, and having perused the material on record, we are satisfied that ground nos. 9 and 10 have remained to be disposed of and the impugned order needs to be recalled accordingly. We order so. The Registry is directed to refix the matter for the limited purposes of disposing of these two grounds of appeal. Issues:1. Correction of amounts related to interest income, commitment fees, and agency income in the order dated 4th December 2020.2. Disposal of ground nos. 9 and 10 in the appeal regarding the allowance of credit for tax deducted at source (TDS).Correction of Amounts:The applicant pointed out mistakes in the order dated 4th December 2020 regarding the quantum of interest income, commitment fees, and agency fees. The correct amounts were different from those initially mentioned in the order. The Tribunal acknowledged the error and rectified the figures to be interest income of Rs. 28,34,87,399, commitment fees of Rs. 5,57,48,328, and agency fees of Rs. 7,85,444. The Departmental Representative did not dispute the need for correction, leading to the rectification of the impugned order accordingly.Disposal of Ground Nos. 9 and 10:Ground nos. 9 and 10 in the appeal raised concerns about allowing credit for tax deducted at source (TDS) even when TDS certificates were not furnished, but income was received net of taxes. The Tribunal failed to adjudicate on these grounds, which the applicant deemed as a mistake apparent from the record. The applicant also argued that once assessed on a grossed-up basis and receiving only the net amount after TDS deductions, they should not be required to pay tax as per section 205 of the Income-tax Act, 1961. Citing relevant judgments, the applicant contended that recovery of tax to the extent of TDS should not be enforced. Both parties agreed that ground nos. 9 and 10 were left unresolved, and it was decided that the impugned order needed to be recalled for further consideration of these grounds. The matter was directed to be refixed for the limited purpose of disposing of these two grounds of appeal.In conclusion, the judgment addressed the correction of amounts related to interest income, commitment fees, and agency fees, rectifying the figures as per the applicant's submission. Additionally, the unresolved ground nos. 9 and 10 concerning the allowance of credit for TDS were identified as mistakes requiring further adjudication, leading to the decision to recall the impugned order for proper disposal of these grounds.