2018 (3) TMI 1353 - AT - Income Tax

Tribunal grants appellant's appeal, directs review of correction statements and TDS returns

Mackintosh Burn Ltd. Versus I.T.O, Ward- 58 (3), TDS, Kol.

The tribunal allowed the appellant's appeal for statistical purposes, directing the assessing officer to review the correction statements, TRACES, and ... Short deduction and payment of TDS shown only due to some technical mistake in the TDS Return filed by the assessee - revised TDS Return for making the correction in the TDS amount - Held that:- We note that as per assessment order made by Income Tax officer(TDS), the total amount of TDS payable by assessee comes to the tune of ₹ 28,22,780/- and since the assessee has rectified the mistake, by filing revised TDS return and correction statements, as discussed above, therefore total TDS payable by the assessee comes to the tune of ₹ 12,860/-. We are of the view that these documents and correction statement should be examined by the assessing officer, therefore, we direct the assessing officer to examine the correction statement, TRACES and revised return of TDS filed by the assessee and adjudicate the issue in accordance with law. Issues:Appeal against order passed by Commissioner of Income Tax (Appeals) regarding Assessment Year 2010-11 under sections 201(1) & 201(1A) of the I.T. Act, 1961.Analysis:The appeal raised several grounds challenging the order under section 250 passed by the Commissioner of Income Tax (Appeals). The appellant contended that the order was arbitrary, perverse, and bad in law, seeking its quashing. Additionally, it was argued that proper opportunity of being heard was not provided, and the order was passed ex-parte. The appellant also claimed that the assessing officer erred in confirming the short deduction of TDS without understanding the mistake in the TDS Return, leading to the alleged default. Furthermore, it was argued that interest on the alleged short deduction was wrongly levied due to a technical mistake in the TDS Return. The appellant sought the opportunity to urge additional grounds of appeal or modify existing grounds during the hearing.The facts of the case revealed that the Income Tax Officer (TDS) analyzed the TDS statement filed by the assessee, identifying defaults in TDS payment. The assessing officer declared the assessee as an 'assessee in default' for a specific amount. On appeal, the Commissioner of Income Tax (Appeals) upheld the addition made by the assessing officer, leading to the appellant's appeal before the tribunal. The appellant, a civil and structural construction company, highlighted errors in the TDS Return for the financial year 2009-2010, resulting in a significant demand. The appellant explained the process of TDS deduction for advance payments and final payments, emphasizing inadvertent errors in the TDS Return that led to the department's conclusion of short deduction. Revised TDS Returns were filed to rectify the errors, which were processed by the Income Tax Department, revealing defaults for only two quarters.During the tribunal hearing, the appellant's counsel presented evidence of filing revised TDS Returns and correction statements, which were not submitted before the lower authorities. The tribunal noted that the revised TDS Returns had been processed by the Income Tax Department, showing defaults for two quarters. Considering the rectification made by the appellant, the tribunal directed the assessing officer to examine the correction statements, TRACES, and revised TDS returns to adjudicate the issue appropriately. The appellant was instructed to participate in the assessment proceedings and pursue the appeal in accordance with the law. Ultimately, the appeal was allowed for statistical purposes, with directions for further assessment by the assessing officer.