2020 (12) TMI 225

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....AO in this case passed an order u/s 143(3) of the Act on 29.12.2009. Thereafter he passed an order u/s 154 of the Act on 28.02.2011. In this order passed u/s 154 of the Act, which runs into six pages, the AO states that the assessee has violated the provisions of Section 197(1B) as he did not deduct TDS from the payment of interest to loan creditors and hence she is liable for disallowance u/s 40(a)(ia) of the Act. As this disallowance was not done in the assessment order passed u/s 143(3) of the Act on 29.12.2009, the same requires rectification u/s 154 of the Act. A notice was given to the assessee, after receiving the reply, the AO concluded as follows: "The assessee did not comply with the notice u/s 154 except submitting an in....

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....issue. The ld. CIT(A) passed an ex-parte order. At para 4.8 of his order he held as follows: "4.8. In view of the above, the ld. AO is directed to verify from the return of income filed by the recipients of interest from the appellant and check if they have declared the receipt of interest in their return of income or not. If the interest received by them have been disclosed in their return of income, the appellant may be given relief to that extent. Further, where the recipients have income which is not taxable and whether declaration under Form No.15G is available, further relief to the appellant may be given. If the recipients have not declared the receipt of interest in their return of income, disallowances made u/s 40(a)(ia) t....

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....t para held as follows: "The details submitted by the appellant before the AO as well as during the appellate proceedings have been considered. The figures and their reconciliation have also been verified. I find that this issue is squarely covered by the decision of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverages vs. Commissioner of Income Tax. The said judgment was delivered on 16.08.2007. The issue to be decided in that case was that the appellant had paid certain amounts to the warehouse owner and a short deduction of TDS was made as a result of which the AO treated it as an assessee in default u/s 201 (1A)." 8. This finding along with his finding at para 4.8 of his order which extracted above clearly ....