MANALI TEXTILES,AHMEDABAD vs. ACIT (CPC) TDS, GHAZIABAD

Heard the parties and perused the records.

The brief facts leading to case is this that the assessee is involved in the business of wholesale trading of bed-sheets and related items and was responsible for making payment for job work undertaken by it one M/s. Danoo Textiles. The assessee was required to deduct tax at source @0.80% up to the limit provided in the lower deduction certificate produced by the said M/s. Danoo Textiles. However, the assessee, inadvertently deducted tax at such lower rate even on certain payments made exceeding the impugned amount and therefore was served with a notice treating the assessee as assessee-in-default in respect of such short deducted amount. It appears from the records that the assessee duly submitted before the Learned CIT(A) that the deductee has already shown the sum paid by the assessee in the income of the relevant assessment year and paid the tax due thereon and accordingly, the case of the assessee is this that further deduction of tax by the assessee would amount to double taxation. Even the said M/s. Danoo Textiles would be deprived of the said credit, since, the time for filing the revised return has also expired. However, such plea of the assessee was not found tenable by the AO. He, ultimately, dismissed the appeal, preferred by the assessee, under s.201(1) of the Act. However, it is the case of the assessee before us that when the said fact was presented before the Learned CIT(A)-8, Ahmedabad, the assessee was directed to produce the certificate in Form No.26A from a Chartered Accountant evidencing the fact that said M/s. Danoo Textiles included the impugned sum in its return of income and had paid tax thereon. However, the assessee could not produce the same at that material point of time and asked for adjournment. Ultimately due to paucity of time, the Learned CIT(A) refused to accept such plea made by the assessee. The assessee has filed before us the said Form No.26A issued by the Chartered Accountant and hence, we find for the ends of justice to grant a further opportunity of hearing to the & 1900/Ahd/2018 Manali Textiles vs. ACIT Asst.Years.– 2013-14 & 2014-15 - 3 – assessee by the Learned CIT(A) since the said document being Form No.26A is required to be considered in order to make justifiable conclusion whether the assessee is assessee-in- default or not. We, therefore, set aside the issue to the file of the AO with the direction upon him to consider the matter afresh upon taking into consideration the Form No. 26A issued by the Chartered Accountant in respect to the tax sought to be deducted by the payee being M/s. Danoo Textiles and also to give opportunity of hearing to the assessee and also upon taking into consideration any other evidence which the assessee may choose to file at the time of hearing of the matter. Learned AO is, therefore, directed to proceed in terms with the aforesaid observations in accordance with law and to conclude the proceedings with reasoned order.

In the result, assessee’s both appeals are allowed for statistical purposes.