Appeals Dismissed: Tax Credit Verification Upheld for 2018-19 & 2019-20, Ensuring Natural Justice in Tax Claims.

The appeals against the orders of the CIT(A) for AY 2018-19 and 2019-20 were dismissed. The assessee's primary issue was the denial of credit for taxes deducted at source. The CIT(A) had already directed the AO to verify and allow the necessary tax credits, addressing the assessee's grievances. The Judicial Member found no reason to alter the CIT(A)'s decision, emphasizing adherence to natural justice and proper verification of tax claims. The decision was pronounced in open court on 31.01.2022.

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Issues:
Appeals against orders of CIT(A) for AY 2018-19 & 2019-20; Denial of credit for taxes deducted at source; Violation of natural justice in adjudicating appeal without hearing; Unauthorized adjustment in tax liability by AO without prior intimation.

Analysis:
The appeals were filed by the assessee against separate orders passed by the Commissioner of Income Tax (Appeals) for AY 2018-19 & 2019-20. Despite the absence of the assessee during the proceedings, an application for adjournment was filed but deemed vague by the Judicial Member. The grounds of appeal raised by the assessee primarily revolved around the denial of credit for taxes deducted at source by the payer. The appellant contended that once tax was deducted at source, the credit should be given to the payee irrespective of whether the payer deposited the tax with the Government. Additionally, the appellant argued that the CIT(A) erred in not providing an opportunity for a hearing, violating principles of natural justice.

The Judicial Member noted that the main grievance of the assessee was the denial of credit for taxes deducted at source. Upon reviewing the impugned orders of the CIT(A), it was observed that the CIT(A) had directed the Assessing Officer to verify the claim of the assessee and allow the necessary credit of taxes paid/deducted at source as per the law. As the relief was already granted by the CIT(A) by directing the AO to verify the claim, the Judicial Member found no reason to interfere with the order of the CIT(A). Consequently, the appeals of the assessee were dismissed, and the decision was pronounced in open court on 31.01.2022.

In conclusion, the judgment highlighted the importance of providing credit for taxes deducted at source and ensuring compliance with principles of natural justice in the adjudication of appeals. The decision emphasized the role of the CIT(A) in directing the AO to verify claims and allow necessary credits, ultimately leading to the dismissal of the assessee's appeals.

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