2013 (11) TMI 666 - AT - Income Tax

Power of CIT(A) to give directions to AO for rectification when no appeal is filing u/s 246A against the order u/s 200A - computerized intimation u/s 200A short deduction / short payment/ late payment and interest thereon. Held that - Since no appeal is provided u/s 246A against the intimation issued u/s 200A, therefore, Ld. CIT (A) having so held could not have given any direction. An Appellate Authority derives its jurisdiction from statutory provisions and, therefore, can act only as per provisions of law bestowing power upon him. If no such power is there, he cannot give any direction. - Decided in favor of revenue.

Summary

Issues:
Appeals filed by Department against separate orders of Ld. CIT (A)- XXX, (TDS) dated 25.05.2012.

Analysis:
The appeals were filed by the Department against the separate orders of Ld. CIT (A)- XXX, (TDS) dated 25.05.2012. Since a common issue was involved in all the appeals, a common order was passed for the sake of convenience. The assessee had filed an adjournment application in some cases, which was rejected due to the common issue across all appeals. The brief facts of the case involved the issuance of computerized intimation u/s 200 A for various financial years regarding short deduction, short payment, late payment, and interest by the ITO (TDS), Ward-55 (5).

The Ld. CIT (A) observed that there was no appeal provision u/s 246 A of the Income Tax Act for filing appeals against the order u/s 200 A. However, certain directions were given in the order to the Assessing Officer, requiring compliance within two months. The Department was aggrieved by these directions, citing various grounds including the jurisdictional overreach by Ld. CIT (A) and errors in fixing time limits for rectification. The Department argued that the Assessing Officer did not have the authority to make corrections in the e-TDS returns filed by the deductor assessee.

The Tribunal considered the submissions and held that since no appeal was provided u/s 246A against the intimation issued u/s 200A, Ld. CIT (A) could not have given any directions. An Appellate Authority can only act within the statutory provisions and powers bestowed upon them by the law. Therefore, the directions given by Ld. CIT (A) were expunged from the order. The Departmental appeals were allowed based on this decision, and the order was pronounced in open court on 27/09/2012.