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2010 (11) TMI 753 - AT - Income TaxMaintainability of appeal - Appealable orders - Provision of section 246A(1)(a) - assessee challenged the non-granting of credit for withholding tax - Held that:- As per the case of CIT vs. Ashoka Engineering Co.[1992 (1) TMI 4 - SUPREME Court] & Gopi Lal vs. CIT [1966 (10) TMI 11 - PUNJAB High Court] it was held that statute pertaining to right of appeal should be given a liberal construction since they are remedial. A right of appeal should not be restricted or denied unless such a construction is unavoidable. The Hon'ble Court went further to hold that : "in case of doubt the appeal should also be allowed rather than denied." In the light of the above precedents favouring a reasonable, practical and liberal interpretation to a provision conferring a right of appeal, the expression "amount of tax determined" used in section 246A(1)(a) should be widely construed as covering all aspects upto the determination of final tax liability. It should not be limited only to the calculation of tax on the total income as per the prescribed rates of taxation. In that view of the matter, the adjudication by the CIT(A) on the question of not granting relief in respect of taxes paid by the assessee or tax deducted at source or tax withheld u/ss 90/91 on behalf of the assessee, has to be construed as the part of the process of determination of tax, covered under clause (a) of section 246A(1). Thus CIT(A) was not justified in dismissing the appeal of the assessee as not maintainable on the aspect of not allowing of credit by the AO of tax withheld on behalf of the assessee u/ss 90 and 91.
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