GREENWAYS AIR & TRAVEL P.LTD,MUMBAI vs. ITO (ITDS) 1(4), MUMBAI

This appeal is filed by the assessee against the order of the Ld. CIT(A)-9, Mumbai dated 03.03.2014 pertaining to assessment year 2008-09.

The assessee challenges the order of the Ld. CIT(A) in confirming the order passed by the AO u/s. 201(1) & 201 (1A) of the Act.

In the first ground the assessee challenges the order of the Ld. CIT(A) in confirming the order passed by the AO is devoid of natural justice as assessee has not given any opportunity to rebut or not provided time to file details regarding shortfall envisaged in the order passed u/s. 201(1) and 201(1A) of the Act.

The Ld. Counsel for the assessee at the outset submits that the AO issued notice u/s. 201(1) on 30.3.2011 stating that there is a short deduction of TDS and required the assessee to explain or clarify the position in this regard. The Ld. Counsel for the assessee further submits that on the very same day the AO passed order u/s. 201(1) and 201(1A) treating the assessee as default for short deduction of tax.

The assessee filed appeal before the Ld. CIT(A) specifically raising the ground that the AO had never given an opportunity to the assessee to furnish the details/explanations with respect to the notice issued u/s. 201 of the Act. However, the Ld. CIT(A) passed order without appreciating the submissions of the assessee. Therefore, he requested that the matter may be sent back to the AO for providing adequate opportunity to the assessee.

The Ld. Departmental Representative has no serious objection in sending back the matter to the AO.

On hearing both the sides, we are of the considered view that the matter has to go back to the AO for fresh adjudication and the AO shall provide adequate opportunity to the assessee to furnish the details/explanation required by the AO. Thus, we restore this matter to the file of the Assessing Officer to decide the issue afresh in accordance with law.

In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 10th February, 2016.