2012 (10) TMI 516 - AT - Income Tax

Self-contradictory order of CIT(A) s - dismissal of revenue appeal as not appealable u/s 246A and simultaneous direction to AO at appeal effect should be given within two months of the receipt of the order - Held that - As decided in Air India Limited case 2012 (10) TMI 494 - ITAT, DELHI when in the opinion of the CIT (A) the appeals are not maintainable against the order u/s 200A and the appeals have been dismissed by him as not maintainable, there is no question of giving effect to the order of CIT (A) that A.O.should give appeal effect to these orders within two months of the receipt of the order. As assessee has pointed out that there were certain mistakes committed by the A.O. while taking the view that there was delay in deposit of TDS where he submitted that there is no delay in the deposit of the TDS by the assessee. Thus the proper course for the assessee would have been to file the rectification petition under Section 154 requesting the AO to modify the order passed u/s 201(1A).

Summary

Issues:
Appeal against CIT (A) order, maintainability of appeals under section 200A, rectification petition under Section 154.

Analysis:
The department filed twelve appeals against the common order of the CIT (A) in cases of different assesses. The department contended that the CIT (A) erred in dismissing the appeals of the deductor assessee, claiming the order passed by the Assessing Officer under section 200A of the IT Act, 1961 was not appealable under section 246A. Despite no appearance by the assessees, the revenue's appeals were decided ex parte. The department argued that the CIT (A) contradicted himself by dismissing the appeals while directing the Assessing Officer to rectify the mistakes within two months. The issues raised were found to be addressed in a previous decision by the Tribunal in the case of "M/s Air India Limited."

The Tribunal observed that when the CIT (A) deems appeals not maintainable against the order under section 200A, there is no requirement to give effect to the order. The Tribunal expunged the direction for the Assessing Officer to give appeal effect but noted that the assessee could file a rectification petition under Section 154 to modify the order passed under section 200A. It was emphasized that the Assessing Officer must dispose of such applications in accordance with the law. Consequently, the Tribunal upheld the CIT (A)'s decision that the assessee's appeals were not maintainable. The Tribunal directed that if the assessee files a rectification application under Section 154, the Assessing Officer should act promptly in accordance with the law. The department's appeals were deemed allowed for statistical purposes.

In conclusion, the Tribunal disposed of the department's appeals with directions similar to a previous decision. All appeals filed by the department were deemed allowed for statistical purposes. The judgment was pronounced on 12.10.2012.