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Facts
A survey by the Assessing Officer led to a computation of short deduction of TDS and interest totaling Rs. 18,52,532/- against the assessee. The assessee's subsequent appeal to the CIT(A) was dismissed in limine due to a 181-day delay, which the CIT(A) refused to condone.
Held
The Tribunal condoned the 181-day delay, finding that the CIT(A) erred in dismissing the appeal in limine. The matter was remitted back to the Assessing Officer for fresh verification of TDS details, allowing the assessee an opportunity to present its case with relevant documents.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal in limine without condoning a delay of 181 days, and whether the TDS short deduction matter should be remitted for re-examination by the Assessing Officer.
Sections Cited
133A(2A), 192B, 194C, 195, 201(1), 201(1A)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, HYDERABAD “A” BENCH: HYDERABAD
Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G
1 ITA.No.270/Hyd./2025 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “A” BENCH: HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER ITA.No.270/Hyd./2025 Assessment Year 2016-2017 Siby Mining and The Commissioner of Infrastructure Private [vs. Income Tax (TDS), Limited, Hyderabad. Hyderabad. PIN – 500081 PAN AAECS9130L (Appellant) (Respondent) For Assessee : CA C.Suresh For Revenue : Sri Gurpreet Singh, Sr. AR Date of Hearing : 16.06.2025 Date of Pronouncement : 17.06.2025 ORDER PER MANJUNATHA G. :
This appeal has been filed by the Assessee Company against the order dated 24.12.2024 of the learned CIT(A)-12, Hyderabad, relating to the assessment year 2016-2017.
Brief facts of the case are that, the assessee is a company engaged in the business of earthwork contract, mining contract and controlled blast work. A survey
2 ITA.No.270/Hyd./2025 operation u/s 133A(2A) of the Income Tax Act, 1961 [in short “the Act”] was conducted by the Assessing Officer on 24.11.2015 at the business premises of the assessee to verify the compliance with respect to TDS provisions of as contained in Chapter XVIIB of the I.T. Act. Before the Assessing Officer the assessee has filed all details including relevant quarterly returns along with challans and also party-wise TDS statements to prove TDS deduction on various payments including salary u/sec.192B, TDS on contract payments u/sec.194C, TDS on interest on loan u/sec.195 etc., However, the Assessing Officer without considering the relevant details filed by the assessee, computed the short deduction of TDS u/sec.201(1) and consequential interest u/sec.201(1A) of the Act and determined the total short deduction of TDS and interest at Rs.18,52,532/-.
Aggrieved by the assessment order passed by the Assessing Officer, the assessee carried the matter in appeal before the learned CIT(A) with a delay of 181 days and explained the reasons for delay in filing the appeal. The 3 ITA.No.270/Hyd./2025 learned CIT(A) dismissed the appeal filed by the assessee in limine without condoning the delay in filing the appeal on the ground that reasons given by the assessee does not come under ‘sufficient and reasonable cause’.
Aggrieved by the order of the learned CIT(A), the assessee is now in appeal before the Tribunal.
CA C. Suresh, Learned Counsel for the Assessee submitted that, the Assessing Officer has passed the assessment order without providing reasonable opportunity of hearing. The learned CIT(A) has dismissed the appeal in limine without condoning the delay even though the assessee has sought for personal hearing through video conferencing to explain the case. Further, the assessee has submitted all the details. Therefore, one more opportunity may please be provided to the assessee to substantiate it’s case with relevant evidences and pleaded that the matter may be restored back to the file of Assessing Officer in the interest of substantial justice.
4 ITA.No.270/Hyd./2025 6. Shri Gurpreet Singh, Sr. AR for the Revenue, fairly agreed that the issue may be set-aside to the file of Assessing Officer to give one more opportunity to the assessee to explain it’s case.
We have heard both the parties, perused the material on record and the orders of the authorities below. We find that, admittedly, the learned CIT(A) has dismissed the appeal of assessee in limine without condoning the delay. The Assessing Officer also made the impugned addition without appreciating the relevant documents such as relevant quarterly returns along with challans and also party-wise TDS statements to prove TDS deduction on various payments including salary u/sec.192B, TDS on contract payments u/sec.194C, TDS on interest on loan u/sec.195 etc., made by the assessee. We, therefore, after considering the reasons given by the assessee, condone the delay of 181 days in filing the appeal before the learned CIT(A) and deem it fit and appropriate to remit the matter back to the file of Assessing Officer for fresh verification. The assessee is directed to file all the documents including
5 ITA.No.270/Hyd./2025 relevant quarterly returns etc., to prove it’s case in consequential proceedings. Accordingly, the grounds of the assessee are allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 17.06.2025