Case Law Details
JCIT(OSD) Vs Sistema Shyam Teleservices Ltd (ITAT Delhi)
ITAT Delhi held that initiation of action u/s. 154 of the Income Tax Act on the basis of shortfall in TDS on year end provisions reported in Form 3CD of the assessee cannot be faulted. Accordingly, matter remanded to AO.
Facts- The Assessing Officer (AO) found that for F.Y. 2012-13 the assessee deductor was required to deduct TDS aggregating to Rs. 15,59,44,667/- (including interest) on gross amount of Rs. 2,87,53,24,755/- under various TDS provision of the Income Tax Act, 1961 which the assessee had failed to do. AO, therefore, issued notice u/s. 154 of the Act to rectify the order passed by him u/s. 201(1)/201(1A) of the Act whereby demand of Rs. 4,39,84,927/- was raised.
Aggrieved, the assessee appealed before the CIT (A). CIT(A) quashed the impugned order of the AO. Being aggrieved, revenue has preferred the present appeal.
Conclusion- It is not in dispute that the AO proceeded to initiate action under Section 154 of the Income Tax Act on the basis of shortfall in TDS on year end provisions reported in Form 3CD of the assessee for FY 2012-13. If that be so, we are of the view that action of the AO to resort to the provisions of Section 154 of the Income Tax Act cannot be faulted. We also observe that no finding on merits of the case has been recorded by the CIT (A). We, therefore hold that in the interest of justice and fair play the issue needs to be restored to the file of the AO with a direction to decide the issue under consideration afresh in accordance with law after allowing reasonable opportunity to the assessee to explain its case.
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