SREI INFRASTRUCTURE FINANCE LTD.,KOLKATA vs. DCIT, (TDS), CIR-59, KOLKATA, KOLKATA

This appeal filed by the assessee against the order of Ld. CIT(A)-24, Kolkata dated 19.11.2015 for AY 2006-07.

The main grievance of the assessee is that it has deducted TDS, however, the AO has held the assessee a defaulter u/s. 201(1) and 201(1A) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) on account of non-payment of the amount deducted to the tune of Rs.12,00,170/-. According to the assessee, the assessee had deposited the TDS to the tune of Rs. 10 lacs on 6.04.2006; deposited Rs.45,648/- on 07.04.2006; and deposited on 07.07.2005 Rs.10,640/-; and excess TDS deposited to the tune of Rs.1,38,423/- vide challan dated 07.03.2006 against the demand raised by the AO. According to the Ld. AR, the Ld. CIT(A) has simply dismissed the appeal on the ground that the Ld. AR was not able to explain the reason for the mismatch in the TRACES which is the reconciliation statement in the Website of the Department. We note that the Ld. CIT(A) has not accepted the papers filed before him by assigning the reason that the papers were unsigned. We note that the order of the AO u/s. 201(1) and 201(1A) of the Act is dated 23.04.2012 is without hearing the assessee; and since the impugned order of Ld. CIT(A) as well as AO are without hearing SREI Infrastructure Finance Ltd., AY 2006-07 the assessee, in the interest of justice, and on the facts/TDS which the assessee claims to have remitted with the department, we are inclined to set aside the order of the Ld. CIT(A) and remand the matter back to the file of the AO, with the direction to adjudicate the issue afresh after going through the claim made by the assessee that TDS has been deposited in excess and, therefore, assessee should not have to be held to be in default u/s. 201(1) and 201(1A) of the Act. The assessee is directed to cooperate and the AO to pass a speaking order after going through the evidence furnished by the assessee as to the deposit of TDS. The appeal of the assessee is allowed for statistical purposes. 3. In the result, the appeal of assessee is allowed for statistical purposes.