2022 (8) TMI 1275 - AT - Income Tax

Non Deduction of TDS u/s 194A due to receipt of Form 15-H - Rectification application u/s 154 was rejected by the AO on the ground that CIT(A) has already dismissed the appeal - HELD THAT - We have heard ld. DR for the Revenue. None appeared on behalf of the assessee despite several notices. Upon careful consideration, we find that CIT (A) has passed a correct and well reasoned order. CIT (A) that further the issues raised by assessee were not rectifiable u/s 154 of the Act is accordingly upheld. Hence, we uphold the order of ld. CIT(A).

Summary

Issues:
Appeal against CIT (A) orders, Failure to deduct tax under Section 194A, Dismissal of rectification application, Discrepancy in TDS rates, Appeal before ITAT, Assessment of interest and penalties.

Analysis:
The judgment pertains to appeals by the assessee against CIT (A) orders, consolidated and disposed of together due to common issues. The grounds of appeal mainly challenge the order of the CIT (A) alleging errors in law and facts, particularly regarding the liability to deduct tax under Section 194A of the Income Tax Act on interest accrued to depositors. The Assessing Officer had passed an order under Section 154, calculating short charges and interest under Section 201(1A) against the assessee for failure to deduct TDS on accrued interest. The assessee filed applications and appeals, including before the CIT (A) and ITAT, highlighting discrepancies in TDS rates and non-consideration of evidence by the AO.

The CIT (A) dismissed the appeal, noting that the AO had rectified the TDS rate to 10.20% on the reduced interest amount, addressing the primary issue raised by the appellant. The CIT (A) found no further rectifiable issues under Section 154 of the Act, leading to the dismissal of the appeal. Subsequently, the assessee appealed to the ITAT, where the Revenue was represented by the Senior DR, and despite multiple notices, no representation was made on behalf of the assessee. The ITAT upheld the CIT (A) order, affirming that the issues raised were not rectifiable under Section 154, resulting in the dismissal of all appeals filed by the assessee.

The judgment meticulously details the chronological events, submissions, and calculations related to the assessment of interest, short charges, penalties, and interest under various sections of the Income Tax Act. The ITAT's decision to dismiss the appeals was based on the reasoning that the CIT (A) had correctly addressed the primary issue raised by the appellant, and no further rectifiable issues were found. The judgment emphasizes the importance of compliance with tax deduction obligations and the procedural aspects of rectification applications under the Act.