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2014 (4) TMI 890 - AT - Income TaxValidity of CIT(A)’s action – Dismissal of appeal against order u/s 200A of the Act – AO is directed to take corrective action - The CIT(A) on the one hand has dismissed the appeal of the deductor assessee by holding that the order passed by the Assessing officer u/s 200A of the Income-tax Act, 1961 is not appealable u/s 246A of the Income Tax Act, 1961 and on the other hand has given direction to the Assessing officer to take corrective action to rectify the mistakes in the order within two months either through the ITD System or manually – Held that: -As per the clear provisions of I.T. Act, if assessee chooses to proceed with the legal remedy provided by the Act, the AO has to decide the issue in accordance with law, even if there is no direction of the CIT(A) - The net effect of the direction of CIT(A) is to the effect that if the assessee files rectification application the AO will decide the same in accordance with law - The direction of the CIT(A) to assessing officer (TDS) to give appeal effect within 2 months of the receipt of order has no consequence inasmuch as the entire process will start only after application is filed by the assessee – the CIT(A)’s directions are ineffective and do not create any legal binding – the assessee has various remedies under Income-tax Act - To seek remedial action, there cannot be any estoppel over that remedial right in accordance with law - If the assessee chooses to take a remedial action as a rule of law AO has to decide the same in accordance with law - In view of assessee’s agreeing that appeals were not maintainable, the revenue’s appeals are allowed – Decided in favour of Revenue.
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