CEM Business Solutions Private Limited Vs ITO (ITAT Chennai)
TDS Demand Can’t Be Confirmed Without Adjusting Credits: Chennai ITAT Restores Matter to CIT(A)
Chennai ITAT ‘C’ Bench allowed the assessee’s appeal for statistical purposes and set aside the NFAC order which had dismissed the appeal as defective for delay. Tribunal noted that the CIT(A) rejected the appeal without condoning delay, even though substantial unadjusted TDS credits (₹4.09 lakh) were available across FYs 2012-13 to 2023-24. The AO had raised consolidated demands towards late filing fee u/s 234E, interest u/s 220(2), and other TDS-related charges without considering these credits. In the interest of justice, ITAT condoned the delay, restored the matter to CIT(A), and directed fresh adjudication after adjusting credits and granting reasonable opportunity to the assessee.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal of the assessee is filed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, (in short “ld.CIT(A)”) for the assessment year (A.Y.) 2013-14, vide order dated 15.07.2025.
2. Brief facts of the case are that the assessee is a company and belatedly filed its quarterly returns of TDS for A.Y.2013-14. During the financial year 2012-13, the assessee stated that the quarterly returns have been filed belatedly though the challans has been paid in the respective months and hence levied the penalty to the tune of Rs.38,185/- as late fee u/s.234E of the Act and Rs.57,092/- towards interest u/s.220(2) of the Act. Further, the AO verified the internal database and found that there was an outstanding TDS demand of Rs.9,93,646/- relating to the various financial years from F.Y 2010-11 to F.Y 2023-24 and hence raised a demand of Rs.7,12,807/- on account of late payment interest, additional late payment interest, late deduction interest, late filing fees and interest u/s.220(2) of the Act by passing an order u/s.200A of the Act dated 08.10.2024. Aggrieved, the assessee preferred an appeal before the Ld.CIT(A).
