2019 (9) TMI 340 - AT - Income Tax

Tribunal Upholds Commissioner's Decision on TDS Credit Dispute

The Tribunal upheld the Commissioner's decision, emphasizing timely compliance with judicial directives and dismissing the Revenue's appeal. The case ... Non granting TDS credit - original TDS certificates furnished by the assessee at the time of assessment proceedings - second round of litigation before the Tribunal - HELD THAT:- AO to grant the benefit of TDS credit on the basis of original TDS certificates filed by the assessee. The Assessing Officer while passing the order giving effect to the order of Tribunal has deliberately closed his eyes on the directions of Tribunal. In the second round of appeal, the Commissioner of Income Tax (Appeals) again vide order dated 23-12-2016 directed the Assessing Officer to comply with the directions of Tribunal but till date the Assessing Officer has not given effect to the order of Tribunal dated 30-06-2014. Shri N. Ashok Babu representing the Department filed a copy of the order dated 16-07-2019 passed u/s. 154 by the Assessing Officer giving effect to the directions of Tribunal order dated 30-06-2014. AO has now complied with the directions of Tribunal though belatedly. The present appeal filed by the Revenue is without any merit. We see no infirmity in the directions by the First Appellant Authority to Assessing Officer to comply with the decision of Tribunal. In fact, judicial discipline demands that the Assessing Officer should have complied with the directions of the Tribunal in first instance only. Issues:- Non-granting of TDS credit to the assessee based on original TDS certificates.- Compliance with the directions of the Tribunal regarding TDS credit.- Dispute over the assessment of TDS credit for the assessment year 2008-09.Analysis:1. Issue of Non-granting TDS Credit: The appeal by the Revenue was against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2008-09, challenging the non-granting of TDS credit amounting to Rs. 4,99,92,971 to the assessee despite the submission of original TDS certificates. The Commissioner of Income Tax (Appeals) had directed the Assessing Officer to allow TDS credit based on the credits available in Form No. 26AS statements. However, the assessee contended that they had submitted original TDS certificates totaling Rs. 10,23,35,857, but only Rs. 5,23,42,886 was granted. The Tribunal, referring to a judgment of the Hon’ble Allahabad High Court, directed the Assessing Officer to grant credit for TDS based on the certificates furnished by the assessee.2. Compliance with Tribunal Directions: Despite the Tribunal's clear directions to grant TDS credit based on original TDS certificates, the Assessing Officer did not comply with the order when giving effect to the Tribunal's decision. The Tribunal had to intervene again, and the Commissioner of Income Tax (Appeals) directed the Assessing Officer to follow the Tribunal's directions and grant TDS credit based on the certificates provided by the appellant. The Tribunal emphasized that the Assessing Officer should allow credit for the tax deducted at source as per the judgment of the Hon’ble Allahabad High Court.3. Dispute Resolution: The Revenue, in its appeal, challenged the findings of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to grant TDS credit based on the certificates submitted by the assessee. The assessee argued that the Assessing Officer had repeatedly failed to comply with the Tribunal's directions, leading to delays in granting the TDS credit. Eventually, the Assessing Officer complied with the Tribunal's directions, and the Tribunal upheld the Commissioner's decision, dismissing the Revenue's appeal. The Tribunal emphasized the importance of judicial discipline and compliance with the Tribunal's orders, highlighting the need for timely and accurate implementation of directives.In conclusion, the judgment addressed the issue of non-granting TDS credit to the assessee based on original TDS certificates, emphasized compliance with Tribunal directions, and resolved the dispute over the assessment of TDS credit for the assessment year 2008-09. The Tribunal upheld the Commissioner's decision, emphasizing the importance of timely compliance with judicial directives and dismissing the Revenue's appeal.