2022 (1) TMI 1414 - AT - Income Tax

Denial of credit of TDS - HELD THAT - A perusal of the impugned orders of the ld. CIT(A) reveals that the ld. CIT(A) after considering the submissions of the assessee has directed the AO to verify the claim of the assessee and allow the necessary credit of the taxes paid/deducted at source as per law. Since the CIT(A) has already granted relief to the assessee by directing the AO to verify the claim of the assessee, therefore do not find any reason to interfere in the order of the ld. CIT(A). The appeals of the assessee are, therefore dismissed.

Summary

Issues:
Appeals against orders of CIT(A) for AY 2018-19 & 2019-20; Denial of credit for taxes deducted at source; Violation of natural justice in adjudicating appeal without hearing; Unauthorized adjustment in tax liability by AO without prior intimation.

Analysis:
The appeals were filed by the assessee against separate orders passed by the Commissioner of Income Tax (Appeals) for AY 2018-19 & 2019-20. Despite the absence of the assessee during the proceedings, an application for adjournment was filed but deemed vague by the Judicial Member. The grounds of appeal raised by the assessee primarily revolved around the denial of credit for taxes deducted at source by the payer. The appellant contended that once tax was deducted at source, the credit should be given to the payee irrespective of whether the payer deposited the tax with the Government. Additionally, the appellant argued that the CIT(A) erred in not providing an opportunity for a hearing, violating principles of natural justice.

The Judicial Member noted that the main grievance of the assessee was the denial of credit for taxes deducted at source. Upon reviewing the impugned orders of the CIT(A), it was observed that the CIT(A) had directed the Assessing Officer to verify the claim of the assessee and allow the necessary credit of taxes paid/deducted at source as per the law. As the relief was already granted by the CIT(A) by directing the AO to verify the claim, the Judicial Member found no reason to interfere with the order of the CIT(A). Consequently, the appeals of the assessee were dismissed, and the decision was pronounced in open court on 31.01.2022.

In conclusion, the judgment highlighted the importance of providing credit for taxes deducted at source and ensuring compliance with principles of natural justice in the adjudication of appeals. The decision emphasized the role of the CIT(A) in directing the AO to verify claims and allow necessary credits, ultimately leading to the dismissal of the assessee's appeals.