TDS compliance verification requires fresh adjudication when Forms 15G, 15H and Form 26Q were not examined earlier.

Where material TDS compliance documents were not examined by the lower authorities, the Tribunal restored the matter for fresh verification rather than sustaining the assessee-in-default finding. The assessee had produced Forms 15G and 15H and also placed acknowledgements of electronic filing of Form 26Q under Rule 31A, but these had not been verified before the Assessing Officer or the first appellate authority. The earlier orders under sections 201(1) and 201(1A) were therefore set aside and the Assessing Officer was directed to re-examine the declarations and statement de novo after giving the assessee an opportunity to furnish the relevant records.

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Issues: Whether the orders treating the assessee as an assessee in default under section 201(1) of the Income-tax Act, 1961, together with interest under section 201(1A), were sustainable where the declarations in Forms 15G and 15H were said to be defective and the electronic filing of Form 26Q was not examined by the lower authorities.

Analysis: The assessee produced Forms 15G and 15H and, before the Tribunal, also placed acknowledgements showing electronic filing of Form 26Q under Rule 31A of the Income-tax Rules, 1962. These documents had not been placed before the Assessing Officer or the first appellate authority, so the factual claim of due filing had not been verified at the assessment stage. In these circumstances, the proper course was to afford the assessee another opportunity and to require the Assessing Officer to examine the declarations and the e-filed statement afresh.

Conclusion: The matter was remitted to the Assessing Officer for de novo consideration after giving the assessee an opportunity to produce the relevant forms and statement, and the earlier orders under sections 201(1) and 201(1A) were set aside for that purpose.

Final Conclusion: The controversy on TDS default was not finally decided on merits and was sent back for fresh adjudication after verification of the assessee's compliance documents.

Ratio Decidendi: Where material documents bearing on TDS compliance were not examined by the lower authorities, the issue should be restored for fresh adjudication after verification rather than finally sustained on an unverified record.

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