M/S SRI. LAKSHMI VENKATESHWARA TRANSPORT,HOSPET vs. DCIT, BANGALORE

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ITA 935/BANG/2015Status: DisposedITAT Bangalore15 February 2017AY 2011-125 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the CIT(A) and remanded the matter back for reconsideration. The assessee was directed to pay any deficiency in self-assessment tax after verification of their TDS claim.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) for non-payment of self-assessed tax. The assessee claimed that due to being in police custody, they could not represent themselves and had inadvertently not claimed TDS of Rs. 8,43,777, which exceeded their tax liability.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal in limine for non-payment of self-assessed tax when the assessee claimed to have already paid more than the tax due via TDS.

Which sections of the Income-tax Act were involved?

Section 194C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCH ‘ C ’

Before: SHRI VIJAY PAL RAO & SHRI S. JAYARAMAN

For Appellant: Shri V. Srinivasan, Advocate

Per Shri Vijay Pal Rao, J.M. : This appeal by the assessee is directed against the order dt.14.01.2015 of Commissioner of Income Tax (Appeals)-11, Bangalore for the Assessment Year 2011-12.

2.

The assessee has raised various grounds in this appeal however at the time of hearing, the learned Authorised Representative of the assessee has pointed out that the CIT (Appeals) has dismissed the appeal of the assessee in limine for want of payment of self-assessed tax. The learned Authorised Representative has submitted that since the assessee was in police custody during the relevant period therefore there was no representation on behalf of the assessee before the CIT (Appeals).

1.

2.1 He has further submitted that the assessee has admitted income of Rs.24 lakhs in the return of income on which a tax liability of Rs.7,20,000 arises. The assessee has inadvertently not claimed the advance tax being Tax Deducted at Source under Section 194C to the extent of Rs.8,43,777 in the return of income which is more than the self- assessed tax liability of the assessee. Thus the learned Authorised Representative of the assessee has submitted that the assessee has already paid more than self-assessed tax liability. In support of these submissions the assessee filed an Affidavit giving the details of the TDS under Section 194C which was inadvertently not claimed in the return of Rs.8,43,771. The learned Authorised Representative has pointed out that the assessee has annexed the proof of TDS to the extent of Rs.4,80,000 and for balance amount, the Assessing Officer may be directed to verify. Thus the learned Authorised Representative has submitted that since the assessee has already paid the self-assessed tax therefore the matter may be remanded to the record of the CIT (Appeals) for deciding the same on merits.

3.

On the other hand, the learned Departmental Representative has submitted that since the assessee has not claimed the TDS amount in the return of income and also has not filed the proof of the TDS in respect of the entire amount therefore this cannot be accepted. He has objected the matter to be remanded to the record of the CIT (Appeals) when the assessee has failed to pay the admitted tax.

4.

We have considered the rival submissions as well as relevant material on record. The appeal of the assessee was dismissed by the CIT (Appeals) in limine for want of payment of self-assessed tax and therefore the CIT (Appeals) has not gone into the merits of the case. The Affidavit in support of his claim that there was a TDS credit of Rs.8,43,771 as explained in para 5 of the Affidavit as under :

We further note that the assessee has also filed the TDS Certificate in Form 23AS in respect of first two amounts of Rs.3,80,000 and Rs.1 lakh totaling to Rs.4,80,000. However the assessee has not furnished any evidence regarding the balance claim of TDS of Rs.3,67,771. On query

Bench that in case this balance amount of TDS is not found, the ld. Counsel for the assessee has stated at Bar that the assessee undertakes to make the payment of the balance amount in such a case.

Accordingly in the facts and circumstances of the case when the assessee has claimed the TDS of Rs.8,43,771 and also furnished the proof of TDS to the extent ofRs.4,77,000, we set aside this matter to the record of the CIT (Appeals) to reconsider the appeal filed by the assessee after verification of the claim of the assessee of TDS and in case if any deficiency is found in payment of self-assessment tax, the assessee shall pay the same and thereafter the CIT (Appeals) decides the appeal of the assessee on merits.

5.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on the 15th day of Feb., 2017.

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