2012 (10) TMI 813 - AT - Income Tax

Revised statements in Form 26Q - errors in reconciliation of TDS rectification - petition under Section 154 - Held that - The issue raised by the Revenue is an academic question as the Assessing Officer has already rectified his orders passed under Section 200A. There is no grievance to the assessee or to the Revenue as on date. In any event the AO was bound to act as per law and dispose off the petition under Section 154 filed by the assessee, which he did. Dismissal of all these appeals of the Revenue, as infructuous.

Summary

Issues:
Appeal by Revenue against dismissal of appeal by Commissioner of Income Tax (Appeals) regarding correction of TDS errors and interest on late payment.

Analysis:
The judgment pertains to four appeals filed by the Revenue concerning different assesses but with a common issue. The assessee received an intimation under Section 200A of the Income Tax Act, 1961, demanding payment for short deduction of tax at source and interest due to errors in TDS reconciliation. The assessee rectified the errors by filing a revised Form 26Q return, leading to the Assessing Officer deleting the demand for short deduction of tax and interest. However, interest on late payment was still demanded, which the assessee paid. Subsequently, the Assessing Officer accepted the submission of the assessee and determined the demand as 'nil' under Section 154 of the Income Tax Act, 1961.

The assessee then appealed to the Commissioner of Income Tax (Appeals), who dismissed the appeal but directed the Assessing Officer to consider the revised statements and rectify his earlier orders under Section 200A after completing necessary checks. The Assessing Officer sought deletion of these directions through a rectification petition, which was dismissed by the Commissioner of Income Tax (Appeals). The Revenue appealed, contending that the directions given were erroneous as the appeal of the assessee was deemed not maintainable.

The Tribunal, after considering the arguments, found the issue raised by the Revenue to be academic since the Assessing Officer had already rectified the orders under Section 200A, following the directions of the Commissioner of Income Tax (Appeals). As there was no grievance to either party at the present time, the Tribunal deemed the appeals of the Revenue as infructuous and dismissed them. The judgment concludes by dismissing all four appeals filed by the Revenue.