RNB DIGITRONIX PVT. LTD.,KOLKATA vs. ITO (TDS), WD-59(1), KOLKATA, KOLKATA
What did the Tribunal hold?
The Tribunal restored the appeal to the CIT(A) for fresh adjudication on merits. The CIT(A) was directed to provide three effective opportunities of hearing to the taxpayer.
What were the facts?
The assessee's appeal was decided ex parte by the CIT(A) who affirmed the assessee's liability for TDS on royalty payments. The assessee claimed non-appearance was neither intentional nor deliberate and that the CIT(A) did not adjudicate the royalty issue on merits.
What were the issues?
Whether the CIT(A) erred in passing an ex parte order without proper adjudication of the royalty issue and whether the assessee was given adequate opportunity to present its case.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA BENCH “B” KOLKATA
Before: Shri S.S.Godara & Shri, M. Balaganesh
PER S.S.Godara, Judicial Member:
- This assessee’s appeal for assessment year 2011-12 is directed against the Commissioner of Income Tax (Appeals)-24, Kolkata’s order dated 09.03.2016 passed in case No.4/CIT(A) 24/Kol/2014-15 u/s 154 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.
It emerges at the outset that the CIT(A)’s has passed his lower appellate order ex part whilst affirming the assessee’s action treating the assessee to be an assessee in default qua royalty paid in the relevant previous year amounting to ₹24,97,318/- liable for TDS deduction @ 10%
coming to ₹2,49,732/-. He has coumputed sec. 201(1) and 201(1A) interest of ₹2,49,732/- and ₹1.19,872/-; respectively. Suffice to say, both the Learned Representatives take us to CIT(A)’s order para-4 indicating the assessee to have sought adjournment on 18.02.2006 followed by similar such ITA No.1077/Kol/2016 A.Y. 2011-12 RNB Digitronix Pvt. Ltd. Vs. ITO(TDS), Wd-59(1) Kol. Page 2 postponement(s) finally culminating in the CIT(A)’s ex parte lower appellate order under challenge. The assessee’s only case before us is that it was always ready and willing to render necessary assistance and the appellate authorities case impugned non appearance before the CIT(A) is neither intentional nor deliberate. It further transpires that CIT(A)’s findings in para-5 of the lower appellate order nowhere discuss the relevant royalty issue vis-à- vis application of TDS provisions enshrined in Chapter-XVII of the Act as per sec. 250(6) of the Act followed by a detailed adjudication. We therefore restore the instant appeal back to the CIT(A) for afresh adjudication on merits after affording three effective opportunities of hearing to the taxpayer for presenting its case failing which our instant remand directions would stand vacated.
This assessee’s appeal is accepted for statistical purposes in above terms. Order pronounced in the open court 28/09/2018 (लेखा सद%य) ("या'यक सद%य) (M.Balaganesh) (S.S.Godara) (Accountant Member) (Judicial Member) Kolkata, *Dkp, Sr.P.S (दनांकः- 28/09/2018 कोलकाता । आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. अपीलाथ"/Appellant-RNB Digitronix Pvt. Ltd., 53A, Free School St. Kolkata-16
""यथ"/Respondent-ITO(TDS), Ward-59(1), Kolkata-71 3. संबं3धत आयकर आयु4त / Concerned CIT Kolkata 4. आयकर आयु4त- अपील / CIT (A) Kolkata 5. 7वभागीय "'त'न3ध, आयकर अपील"य अ3धकरण, कोलकाता / DR, ITAT, Kolkata 6. गाड< फाइल / Guard file. By order/आदेश से, // Sr. Private Secretary, Head of Office/DDO आयकर अपील"य अ3धकरण, कोलकाता ।
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