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TMI Blog2023 (6) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance u/s 14A r.w.r 8D as per the directions of CIT(A) in the first round of appeal and in accordance with law. Credit for TDS as claimed in the revised return as per 26AS statement denied - grievance of the assessee that despite the directions of CIT(A) to AO to grant the credit for TDS and prepaid taxes, the AO has not granted the same - HELD THAT:- Whatever credit of taxes and TDS which has been deducted on behalf of the assessee and the credit for which the assessee is entitled, the assessee should be given the credit of those taxes and the assessee should not be made to enter into prolonged litigation on the issue more so, when the claim of the credits is not found to be bogus. We do not appreciate the conduct of the authorities for not granting the legitimate credit of the tax paid on behalf of the assessee and assessee should not be made to fight for getting the credit of the prepaid taxes and TDS which is rightfully due to it - We direct the AO to promptly grant the credit of the prepaid taxes including TDS which is allowable to assessee in accordance with law at the earliest. Decided in favour of assessee. - ITA No. 2563/Del/2018 - - - Dated:- 13-6-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ections of the learned CIT (Appeals) and the decisions of various High Courts on the matter and granting credit for pre-paid taxes as claimed in the Revised Return even which are appearing in the 26AS Statement on the website of the Department, by stating that these issues in the third round of appeal -despite the learned AO not giving due regard to the directions of his higher authorities. 2. The CIT (A) has erred in not adjudicating the ground regarding the learned AO not granting relief as per the directions of the learned CIT [A] regarding the disallowance of expenses us 14A after taking into account the submissions workings made in accordance to the decisions of jurisdictional other High Courts in this regard and passing a speaking order. 3. The CIT [A] has erred in not adjudicating the ground regarding the learned AO not granting the correct credit for TDS and prepaid taxes even as per 26 AS statement of the Computer site of the Department as per the directions of the learned CIT [A]. 4. That the above grounds are independent and without prejudice to each other. 5. That the appellant seeks leave to add, amend, alter, abandon or substitute any of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the decisions of jurisdictional High Court and pass a speaking order on the issue. Learned AR submitted that thereafter AO passed appeal giving effect order dated 07.05.2012, the copy of which is placed at page 95 of the paper book. From the aforesaid order he pointed out that the AO did not deal with the directions of CIT(A) though the submissions were filed before AO during the appeal effect proceedings. He submitted that since AO did not adjudicate on the issue, assessee once again carried the matter before CIT(A) who vide order dated 20.01.2017 in Appeal No.166, 167/2015-16 at para 3.1, of the order and at para 3.1 noted that AO has not followed the directions given by CIT(A) and once again directed the AO to follow the directions of CIT(A) and re-calculate the disallowance u/s 14A of the Act (the copy of the order is placed at page 97-107 of the paper book). Learned AR thereafter submitted that AO passed second appeal giving effect to the order dated 23.03.2017 (a copy of which is placed at page 106-107 of the paper book). From that order, he pointed that on the issue of disallowance u/s 14A that AO has noted that since no disallowance u/s 14A was made by AO during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 14A(2), AO has to give a finding that he has not satisfying with the correctness of the claim of the assessee in respect of such expenses. He therefore submitted that appropriate directions be issued to the authorities. 10. Learned DR on the other hand supported the order of AO. 11. We have heard the rival submissions and perused the material available on record. The issue in the present ground is with respect to the disallowance u/s 14A r.w. Rule 8D. It is the contention of the assessee that assessee had inter alia suo moto worked out the disallowance u/s 14A r.w.r 8D at Rs. 330.38 lakhs. Thereafter, in view of the decisions of Hon ble Delhi High Court and Bombay High Court, assessee had reworked the disallowance at Rs. 6.07 lakhs, which was also in line with the disallowance made by assessee in A.Y. 2008-09 2009-10. The aforesaid factual submission of the assessee has not been controverted by the Revenue before us. We further find that in the first round of appellate proceedings, CIT(A) had directed the AO to work out the disallowance as per the directions contained in the order dated 10.03.2015 which was not complied by the AO. We further find that again in the secon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore dismissed the ground of assessee. 13. Aggrieved by the order of CIT(A), Assessee is now before us. 14. Before us, Learned AR submitted that in the first round before CIT(A), the AO was given a very clear directions to grant credit of prepaid taxes and TDS. It is the contention of the Ld. AR that the directions of CIT(A) has not been followed by the AO till date. Ld. AR therefore submits that the AO be directed to grant the credit of the prepaid taxes and TDS. 15. Ld. DR on the other hand did not controvert the factual submissions made by Ld. AR but however supported the order of lower authorities. 16. We have heard the rival submissions and perused the material on record. It is the grievance of the assessee that despite the directions of CIT(A) to AO to grant the credit for TDS and prepaid taxes, the AO has not granted the same. It is the settled law that directions issued by a superior appellate authorities are binding on the Assessing Officers and Assessing Officer is required to strictly follow the directions of the appellate authorities and decide the issue as per the directions of the appellate authorities. It is not open to AO to ignore the directions of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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