High Court upholds CIT(A)'s order on Income Tax Act appeal, assessee faces consequences for non-compliance.

The appeal was dismissed by the High Court, upholding the CIT(A)'s order under the Income Tax Act, 1961. The assessee's failure to attend proceedings resulted in an ex parte hearing. The case involved a Public Sector Bank's TDS compliance issues during a survey action, focusing on TDS deduction and non-compliance with tax deduction provisions. The CIT(A) dismissed additional grounds raised by the assessee, including challenges to demands, interest charges, and Circular No. 03/2010 implementation. Relief was denied for not deducting tax on interest payments without Form No. 15G/15H, and the plea regarding the quashing of Circular No. 8 of 2011 was not upheld.

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Issues Involved:
1. Appeal against order passed by CIT(A) under Income Tax Act, 1961.
2. Failure of assessee to attend proceedings leading to ex parte hearing.
3. Default in TDS compliance by a Public Sector Bank during survey action.
4. Dismissal of additional grounds raised by assessee before CIT(A).
5. Grounds of appeal related to TDS deduction, Circular No. 03/2010, and non-deduction of tax on interest payments.
6. Interpretation of Circular No. 03/2010 and Circular No. 8 of 2011 by CIT(A).
7. Denial of relief to assessee for not deducting tax on interest payments without Form No. 15G/15H.
8. Allegation of Circular No. 8 of 2011 being quashed by Delhi High Court.

Analysis:
1. The appeal was filed against the CIT(A)'s order under the Income Tax Act, 1961. The assessee failed to attend proceedings, leading to an ex parte hearing. The case involved a Public Sector Bank's default in TDS compliance during a survey action, where issues related to TDS deduction and non-compliance with tax deduction provisions were raised.
2. The CIT(A) dismissed additional grounds raised by the assessee and upheld the AO's order on TDS default issues. The grounds of appeal included challenges to the demand raised, interest charges, and non-implementation of Circular No. 03/2010 by the assessee.
3. The CIT(A) interpreted Circular No. 03/2010 and Circular No. 8 of 2011, finding that the assessee failed to establish coverage under the circulars. The CIT(A) denied relief to the assessee for not deducting tax on interest payments without obtaining Form No. 15G/15H.
4. The assessee's plea regarding the quashing of Circular No. 8 of 2011 by the Delhi High Court was not substantiated. As a result, the findings of the CIT(A) were upheld, leading to the dismissal of the appeal. The judgment was pronounced on 27.08.2021.

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