2019 (12) TMI 504 - AT - Income Tax

Non-deduction of tax - assessee submitted that the A.O. made addition for non-deducting tax at source in respect of interest paid - Counsel submitted that form 15G/15H was filed late however the same was duly filed before the CIT(A) and CIT(A) ought to have considered these evidences - Ld. D.R. opposed these submissions and supported the order of the authorities below - HELD THAT - As heard the rival submissions. It is not disputed by the revenue that the assessee had filed form 15G/15H. CIT(A) should have considered the evidences supplied by the assessee and in case he was not satisfied he should have got it verified from the bank. Therefore direct the A.O. to delete this addition.

Summary

Issues:
1. Condonation of delay in filing appeal.
2. Reopening of assessment.
3. Addition made on account of non-deduction of tax.

Condonation of Delay in Filing Appeal:
The appellant sought condonation of a 150-day delay in filing the appeal, attributing the delay to the negligence of the Chartered Accountant who was handling the case. The appellant argued that the delay was not attributable to them and that there was a reasonable cause for the delay. The Departmental Representative opposed, stating that the appellant failed to provide reasons for each day's delay. The Judicial Member considered the affidavit filed by the appellant explaining the delay, and citing the Hon'ble Supreme Court's judgment in a similar case, decided to condone the delay, emphasizing that denying condonation would result in a miscarriage of justice.

Reopening of Assessment:
The grounds raised against the reopening of assessment were dismissed as it was found that these grounds were not raised before the Ld. CIT(A). The appellant, an individual trader, had initially declared a taxable income, but the assessing officer assessed the income at a higher amount. The appellant contended that all evidence was presented during the original assessment, and the AO failed to appreciate the facts. However, since these grounds were not raised before the CIT(A), they were dismissed.

Addition on Account of Non-Deduction of Tax:
The AO made an addition for non-deduction of tax at source concerning interest payments to two individuals. The appellant had filed Form 15G/15H late, but it was submitted before the CIT(A). The Judicial Member directed the AO to delete this addition, noting that the CIT(A) should have considered the evidence provided by the appellant or verified it with the bank if unsatisfied, as it was not disputed that the forms were filed. The appeal was partly allowed on this ground.

In conclusion, the appeal was partly allowed, with the delay in filing the appeal being condoned based on the reasoning provided in the affidavit and supported by relevant case law. The grounds related to the reopening of assessment were dismissed due to not being raised before the CIT(A), and the addition made on account of non-deduction of tax was directed to be deleted as the necessary forms were filed.