Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 364 - HC - Income TaxAssessee in default - failure to comply with TDS provisions - Order u/s 201(1) r.w.s.201(1A) – Principles of natural justice – Held that:- The assessee was served with three notices dated 13-12-2011, 16-12-2011 and 21-12- 2011 claiming amounts mentioned therein and calling upon the assessee to show cause why the assessee should not be treated as an assessee in default u/s 201(1) of the Act - the assessee was also requested to furnish the above details month wise in the format mentioned in the said notice to enable the office to verify the TDS compliance and calculations of interest under Section 201(1A) - the assessee never complained of violation of principles of natural justice, on the contrary the liability was admitted and their difficulties in making the payment was expressed - They wanted to make payments in installments and a part of the amount was also paid - if assessee wanted an opportunity to produce statement, nothing prevented the assessee from producing them along with the appeal or file an application to the FAA requesting them to take note of the same and then frame an order of assessment - The Tribunal has proceeded on the assumption that the assessee has been denied a reasonable opportunity by the AO and therefore, the order requires to be set aside - The approach of the Tribunal is not in accordance with law and it has not borne in mind the distinction between the jurisdiction of the FAA in taxation laws as compared to other jurisdiction - The powers of the FAA are co-extensive with that of the AO - the order of the Tribunal cannot be sustained and accordingly, it is set aside. If an assessee who is required to deduct any sum in accordance with the provisions of the Act does not deduct or does not pay or after so deducting fails to pay the whole or any part of the tax as required by or under the Act, then such person shall be deemed to be an assessee in default in respect of such tax - not only the AO is competent to declare an assessee in default, by virtue of Section 221 which empowers an AO to impose penalty payable when tax is in default, authorizes the Assessing Authority also to impose penalty for failure to comply with Section 200 - order passed u/s 201 of the Act by the Assessing Authority is a valid order and Assessing Authority is the competent person to pass such orders - Assessing Authority shall take note of all these payments and if he is convinced about the said payments, give credit to the payments - If such payment do not discharge the entire amount due by the assessee, then recover the balance in accordance with law – Decided in favour of revenue.
|