9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (8) TMI 109 - AT - Income TaxShort granting of interest u/s. 244A and TDS refund - While processing the return there was a short TDS credit of Rs. 7.84 lakhs and interest u/s. 244A was granted. But on second rectification interest u/s. 244A was revised and accordingly there is a demand generated - HELD THAT - CIT(Appeals) has not properly appreciated the present facts of the case whereas the CPC had accepted the rectification petition u/s. 154 and again assessee filed rectification petition for the previous rectification order passed u/s. 154 therefore the CIT(Appeals) should not have rejected the appeal of the assessee summarily. Therefore we remit this issue back to the file of AO for the purpose of verification and after verifying the documents compute the correct claim of TDS and interest u/s. 244A on refund granted to the assessee. Needless to say that reasonable opportunity of hearing be given to the assessee. Accordingly the appeal is allowed for statistical purposes.
Issues:
1. Incorrect granting of interest under Section 244A and TDS credit. 2. Rejection of appeal by CIT(Appeals) based on jurisdictional grounds. Analysis: Issue 1: Incorrect granting of interest under Section 244A and TDS credit The appellant filed an appeal against the order of the CIT(Appeals) regarding the incorrect granting of interest under Section 244A and TDS credit. The appellant argued that the original intimation under Section 143(1) did not grant the TDS credit of Rs. 7,84,445, which was later rectified under Section 154. The appellant contended that the CPC reduced the interest under Section 244A without justification. The appellant's representative requested the matter to be sent back to the Assessing Officer (AO) for a fresh calculation of interest under Section 244A and TDS refund. The ITAT noted the discrepancy in the interest granted and the TDS credit, and remitted the issue back to the AO for verification, directing a proper computation of TDS and interest under Section 244A on the refund granted, emphasizing the need for a reasonable opportunity of hearing for the appellant. Issue 2: Rejection of appeal by CIT(Appeals) based on jurisdictional grounds The CIT(Appeals) rejected the appellant's appeal, stating that the original cause of action was under Section 143(1) and the issue raised in the rectification application under Section 154 could not be adjudicated in the present case. The CIT(Appeals) observed that there was no apparent mistake from the record at the stage of the order passed under Section 154 and dismissed the appeal. The ITAT found that the CIT(Appeals) did not properly appreciate the facts of the case and summarily rejected the appeal. The ITAT, considering the entire case and the appellant's request, remitted the issue back to the AO for verification and proper computation of TDS and interest under Section 244A, emphasizing the need for a reasonable opportunity of hearing for the appellant. The ITAT allowed the appeal for statistical purposes. In conclusion, the ITAT addressed the issues of incorrect granting of interest under Section 244A and TDS credit, as well as the rejection of the appeal by the CIT(Appeals) based on jurisdictional grounds, by remitting the matter back to the AO for proper verification and computation, while emphasizing the importance of providing a reasonable opportunity of hearing to the appellant.
|
