DCIT Vs Novartis India Ltd (ITAT Mumbai)
ITAT Mumbai dealt with Revenue appeal & assessee cross-objection arising from order u/s 201(1) & 201(1A) relating to alleged TDS defaults after survey proceedings. The core dispute involved applicability of sec. 194H on stockist discounts, ESOP TDS timing, & sec. 194A on MSME delayed payment interest. However, the Tribunal did not adjudicate merits because the CIT(A)’s order itself was found fundamentally defective.
During appellate proceedings it was noticed that the CIT(A) had reproduced facts, figures & observations belonging to a different group entity (Novartis Healthcare Pvt Ltd.) instead of the present assessee (Novartis India Ltd.), even mis-naming the assessee and relying on unrelated assessment material. The assessee admitted inadvertent uploading of wrong documents and had already sought rectification.
The ITAT held that an appellate order based on facts of another assessee shows complete non-application of mind, rendering the order unsustainable in law. Since foundational facts were wrong, all conclusions including those on sec. 194H, ESOP TDS & MSME interest could not survive. Accordingly, the impugned order was set aside & matter restored to CIT(A) for fresh adjudication after considering correct material. Both Revenue appeal & assessee cross-objection were allowed for statistical purposes
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