2019 (3) TMI 1796 - AT - Income Tax

Non granting the credit of Dividend Distribution Tax paid u/s. 115-O as appearing in Form No. 26AS - levying interest u/s. 115P - HELD THAT - Admittedly the present appeal filed by the assessee is against the order passed by the Ld. CIT(A) in the quantum assessment proceedings, wherein the issue of Dividend Distribution Tax payable u/s. 115-O of the Act does not find place. Hence, in our view, the remedy against the grievance of the assessee does not arise in the present appeal. However, it is open for the assessee to seek remedy in the manner known to law. Accordingly, we do not find any merit in the present appeal filed by the assessee and reject the same. Appeal filed by the assessee is dismissed.

Summary

Issues:
1. Credit of Dividend Distribution Tax under section 115-O of the Income Tax Act.
2. Levying of interest under section 115P of the Act.
3. Rectification petition before the AO.

Analysis:
1. The appellant contested that the Ld. Commissioner of Income Tax (Appeals) erred in not granting credit of Dividend Distribution Tax paid under section 115-O of the Act as reflected in Form No. 26AS. The appellant argued that the full amount paid was not credited against the tax determined by the Assessing Officer (AO) under section 115-O. The appellant clarified that they were not seeking to deduct the Dividend Distribution Tax against the total income tax but rather to receive credit for the correct amount paid against the liability determined by the AO. The Tribunal noted that the issue of Dividend Distribution Tax did not arise in the quantum assessment proceedings before the Ld. CIT(A). The Tribunal held that the remedy for the grievance did not arise in the present appeal, advising the appellant to seek remedy through appropriate legal means. Consequently, the appeal was dismissed.

2. The appellant also raised the issue of interest levied under section 115P of the Act. However, the Tribunal did not delve into this matter as the primary issue regarding the credit of Dividend Distribution Tax was found to be not applicable in the present appeal.

3. The appellant had moved a rectification petition before the AO, which had not been disposed of at the time of the appeal. The Tribunal acknowledged this but did not provide any specific direction regarding the rectification petition, as the primary issue was deemed not relevant for the present appeal. The Tribunal suggested that the appellant pursue the rectification petition through appropriate legal channels.

In conclusion, the Tribunal dismissed the appeal filed by the appellant regarding the credit of Dividend Distribution Tax under section 115-O of the Income Tax Act, emphasizing that the remedy for the grievance did not arise in the current appeal but could be sought through proper legal procedures.