9911796707
TMI Blog1991 (3) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to give credit for tax deduction in the assessment year in which the relevant receipts was taxed which directions are contrary to provisions of s. 199 the only section prescribing that such credit should be given in the assessment year next following the date of tax deduction and issue of certificate under s. 203. 3. The learned CIT(A) Baroda erred in law and on facts in holding that there was mistake apparent from records of the relevant year rectifiable under s. 154 of the Act on the date on which relevant assessment orders was made as there is no date on records to prove that income referred to in the certificate is already included in the return filed." 2. The respondent-company is engaged in manufacture and supply on turnkey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0). The ITO refused to grant credit in respect of such tax deducted at source in asst. yr. 1982-83 on the ground that the corresponding income pertain to earlier years. Thereafter, the assessee-company submitted an application on 25th Aug., 1985 to the ITO requesting him to allow credit of the amounts of tax deducted at source as per the certificates by making necessary rectification orders for the asst. yrs. 1979-80 to 1981-82. The ITO rejected the said application by his order dt. 28th Aug., 1985. He observed that no such claim was made by the assessee before completion of the assessment proceedings for these three years. Hence, such a fresh claim made after completion of the respective assessments cannot be deemed to be a mistake apparen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o interfere in the matter and advised the assessee to contact the concerned CIT in the matter. The assessee thereafter submitted appeals before the CIT(A) on 22nd Sept., 1986 for all the three years under consideration. 2.2. The learned CIT(A) condoned the delay in submission of these appeals in view of the aforesaid facts and circumstances of the assessee's case. After considering the relevant facts and circumstances, the learned CIT(A) came to the conclusion that the ITO was not justified in rejecting the application submitted by the assessee-company. He, therefore, directed the ITO to verify and allow the credit for the tax deducted at source as per law in the assessment years in which the relevant receipts from which tax was deducted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assessment records pertaining to asst. yrs. 1979-80 to 1981-82 until completion of the respective assessments for those years. Hence, the assessee's claim is clearly beyond the scope of s. 154. He, therefore, urged that the order passed by the CIT(A) should be set aside and that of the ITO should be restored. 4. The learned counsel for the assessee supported the order passed by the CIT(A). He contended that the CIT(A) has justifiably condoned the delay in submission of the appeal, as the assessee had chosen to approach the higher administrative authorities for grant of the legitimate deduction allowable to the assessee in respect of tax deduction at source with the full hope that such legitimate prayer of the assessee will be acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Departmental authorities as well as other documents to which our attention was drawn during the course of hearing. 5.1. In our view, the CIT(A) has rightly condoned the delay in submission of the appeal. The legislature has conferred powers to condone delay in order to enable the authorities to do substantial justice to parties by disposing of matters on merits. The Hon'ble Supreme Court in the case of Collector, land Acquisition vs. Mst. Katiji Ors. (1987) 167 ITR 471 (SC) has held that when substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have a vested right in injustice being done because of a non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any infirmity in the order passed by the CIT(A) directing the ITO to allow the credit for the tax deducted at source, in question, in the assessment years in which the relevant receipts were taxed. This view is also fortified by the decision of the Tribunal in the case of Ranoli Investment Pvt. Ltd. We concur with the reasons and conclusions derived by the Tribunal in the said order. 5.3. it will also be worthwhile to make a useful reference to the Circular No. 5-P, dt. 9th Oct., 1967 issued by the CBDT, containing explanatory notes for explaining the various provisions of Finance (No. 2) Act, 1967 published in Taxman Direct Taxes Circulars Vol. II 1985 Edn at page 174. In para 18 of the said circular appearing at page 180, it has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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