2018 (2) TMI 1160 - HC - Income Tax

Addition for TDS Default made under provisions of Section 206C(6A) - addition of the interest u/s. 206C(7) - Tribunal deleted the addition - Held that - The Tribunal was of the opinion that the order of the CIT (Appeals) is not clear on certain aspects of the matter namely regarding dates of filing of declaration in Form No. 27C by the assessee. It was for this purpose the Tribunal remanded the proceedings to the file of the Assessing Officer for verification of such facts and to examine such facts in light of the judgement of this Court in case of Siyaram Metal Udyog (P) Ltd. (2016 (7) TMI 68 - GUJARAT HIGH COURT). - Decided against revenue

Summary

Issues:
Applicability of section 206C of the Act in relation to TDS default and interest charges under section 206C(6A) and 206C(7) respectively.

Analysis:
The appeals in question revolve around the applicability of section 206C of the Act, specifically concerning the deletion of additions for TDS default and interest charges under sections 206C(6A) and 206C(7). The Assessing Officer initially disallowed the deduction, leading to the matter being escalated to the CIT (Appeals) and subsequently to the Tribunal. The Tribunal referenced a prior judgment of the Court in the case of Commissioner of Income Tax vs. Siyaram Metal Udyog (P) Ltd., emphasizing the importance of timely submission of Form 27C in the context of section 206C. The Tribunal highlighted that the mere delay in filing the declaration should not invalidate the claim if the declaration was genuine and in prescribed format. However, the Tribunal found ambiguity in the CIT (Appeals) order regarding the dates of filing the declaration, prompting a remand of the proceedings to the Assessing Officer for further verification in line with the Siyaram Metal Udyog (P) Ltd. case.

The Tribunal's decision to remand the proceedings for verification of facts related to the filing of declaration in Form No. 27C by the assessee was deemed reasonable and in accordance with the principles outlined in the Siyaram Metal Udyog (P) Ltd. case. The Tribunal's approach of ensuring clarity on crucial aspects of the matter before making a final determination reflects a diligent application of the law. Consequently, the High Court found no fault in the Tribunal's reasoning and upheld the dismissal of the Tax Appeals, affirming the decision reached in the lower courts.