2012 (9) TMI 966 - AT - Income Tax

Summary

Issues involved:
The judgment involves issues related to the levy of interest under section 201(1A) for non-deduction of TDS on payments made for the purchase of premises by the assessee, as well as the admissibility of additional grounds of appeal regarding jurisdiction of the Assessing Officer.

Levy of Interest u/s 201(1A):
The assessee purchased premises in Hyderabad from a non-resident seller, and the Assessing Officer held that interest under section 201(1A) was chargeable for the period until advance tax was paid, despite no demand being raised under section 201(1) due to subsequent tax payment. The interest amount was calculated at 1% on the tax amount, totaling to Rs. 19,68,283.

Grounds of Appeal:
The assessee appealed the order, contending that the interest levy was contrary to law and facts, the order was not a speaking order, the Assessing Officer did not consider the Supreme Court decision in Hindustan Coca Cola Beverages case, and that non-residents are not liable for tax on capital gains under section 115E(a)(ia).

Admissibility of Additional Grounds:
The assessee's counsel filed an additional ground of appeal regarding the jurisdiction of the Assessing Officer, which was initially withdrawn during the hearing due to confusion. However, the counsel later requested to restore the ground, but the Tribunal found the petition signed by the counsel to be not maintainable as per legal requirements.

Decision:
The Tribunal allowed the appeal for statistical purposes, directing the matter back to the CIT(A) to consider the ground related to the liability of non-residents under section 115E(a)(1) which was not addressed in the earlier proceedings. The Tribunal refrained from delving into other grounds raised by the assessee, emphasizing the need for proper consideration of all relevant issues.

Conclusion:
The judgment highlights the importance of adherence to legal procedures in filing appeals and presenting additional grounds before the Tribunal. It also underscores the necessity for thorough consideration of all grounds raised by the parties involved in tax assessment disputes to ensure a fair and just outcome.