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2024 (3) TMI 545 - AT - Income TaxRectification u/s 154 - non deduction of TDS u/s 194I - treating “assessee-in-default” u/sec. 201 r.w.s. 201(1A) for the purpose of recovering the corresponding TDS, involving varying sums, in all these assessment years - HELD THAT:- TDS recoveries pertain to assessee’s payments of licence-fee of various CT and X-ray machines which have been treated as rental in nature attracting sec. 194I - AO had duly passed his sec. 201(1) r.w.s. 201(1A) order(s) on 28.01.2016 not holding the assessee as the assessee-in-default in the “lead” assessment year 2009- 2010. This followed former round of sec. 154 rectification which stood concluded in assessee’s favour on 28.03.2018. AO thereafter took-up yet another sec. 154 rectification in the impugned second round dated 29.11.2019 that the assessee’s foregoing payments duly attracted TDS deduction u/sec. 194I of the Act whose non-compliance would liable it to be treated as the assessee-in-default. We are of the view in this clinching factual backdrop that such a course of rectification of the issue involving detailed enquiries would hardly be available to the AO since as per hon’ble apex court’s landmark decision in TS Balram, ITO vs. Volkart Bros. [1971 (8) TMI 3 - SUPREME COURT]. We thus conclude that the learned lower authorities have erred in law and on facts in treating the assessee as the assessee-in-default in sec. 201 r.w.s. 201(1A), by way of sec. 154 rectification in question. The same is held as not sustainable in law in all these assessment years since involving identical facts.
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