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TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 684
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....onvenience, we have heard the appeals together and disposing of the same by passing a common order. The common Grounds raised in all the appeals read as under:- 1. The Ld. CIT(A) has erred in law and facts by directing the AO to delete the liability of the assessee crated u/s. 201(1) of the Act after verifying the claims of assessee. By doing so, the Ld. CIT(A) has indirectly / virtually set aside the order of the AO which is in contravention to the statutory provisions and not in true spirit of law that do not allow such powers to him. 2. The appellant craves to leave to add, alter, amend and / or modify any of grounds of appeal at or before the hearing of appeal. 2. Briefly stated, facts are that the assessee is a com....
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.... and paid in the subsequent year, asking the assessee to pay the TDS amount again would amount to double recovery of the same taxes. The assessee also stated that interest should be levied only upto the date of deduction of TDS in the subsequent year. There were certain provisions made where party was not known at the time of making the provisions. The assessee prayed that in such cases TDS provisions were not applicable. 3. Upon assessee's appeal, Ld. CIT(A) for assessment year 2017-18 has granted the relief by holding as under :- "6. Findings and Decision: 6.1 Provision of Rs. 32,44,38, 175/- 6.1.1 These provisions were reversed next year. The assessee has deducted and deposited the tax as and when the amount....
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.... that such details be produced before the Income Tax Officer (TDS) for verification. 4. At the remand stage the assessee company has now submitted year wise details of rental charges paid, professional charges paid, contract amounts paid and details of other payments. The details of year end provisions as per tax audit report (disallowed u/s. 40a(i) and 40a(ia), payments made in subsequent year in respect of these provisions and details of tax deducted at source on such payments along with proof of deposit of such TDS into Govt. account were called for and systematically verified. Since, the transactions were enormous in respect of these four assessment years, verifications were carried out randomly for different months for these a....
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.... at source on these amounts in the subsequent year as and when the same were paid by it. Thus, it is liable for charging of interest u/s. 201 (1A) for delayed deduction and remittance of tax to Govt. account. " (Emphasis supplied) 24. In view of the above, the demand on account of tax u/s. 201(1) of the Act, in Our view, will no longer survive. However, the appeals will survive with regard to the liability of the Assessee to interest u/s. 201(1A) of the Act. Therefore, the appeals in so far as it relates to challenge to order u/s. 201(1) of the Act have to be allowed." 6.1.4 In view of the above decision of the Hon'ble Tribunal and going by the spirit of the Act, once the assessee has deducted TDS in the subsequent yea....
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....er, the appellant has claimed that it has either not received the invoices or, the invoices, which have been received next year, pertain to purchase of material on which TDS is not applicable. 6.3.2 Ld. AO is directed to verify the claim of the appellant. If the same is found to be correct or to the extant it is found to be correct, the ld. AO is directed not to charge the TDS u/s 201(1) of the Act on such amount. 6.3.3 In view of the above discussion, the appellant gets the relief to that extant. 6.4 Charging of Interest 6.4.1 The Ld. Assessing officer has computed the interest u/s 201(1A) from the date of provision till the date of the impugned order. 6.4.2 However, as per section 201(1A), whic....
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..../s. 201(1) cannot be raised. Further, the interest u/s. 201(1A) only can be charged upto the date of deduction. The CIT(A) also held that where party is not known, or where transactions have been reversed/ cancelled, TDS provisions are not applicable. Thus, the Ld. CIT(A) granted relief to the assessee in as much as the question of TDS payment was concerned and directed the AO to verify the facts and calculate interest upto the date of deduction. Giving effect to the order of the CIT(A), the AO has passed appeal effect orders for all the impugned assessment years viz. AYrs 2014-15 to 2017-18, providing relief to the assessee and raising interest demand only upto the date of deduction. In view of above, she submitted that the appeals filed b....