Income Tax alleges Form 26A Filed Belatedly and Only 18 of 25 Supplier Certificates Furnished: Madras HC Orders to Reassess Afresh [Read Order]
The Court held that had the petitioner been given an adequate opportunity to file a reply and appear, there would have been no scope for interfering with the impugned order.
The Madras High Court has quashed an assessment order against and remitted the case for a fresh order and held that the petitioner was neither heard nor granted time to furnish further particulars in response to the Show Cause Notice while the department alleged that form 26A was filed belatedly.
Form 26A is an income tax form used in India by a person (deductor) who failed to deduct or short-deduct Tax Deducted at Source (TDS) from a payment made to a resident payee. Furnishing this form, certified by a Chartered Accountant, helps the deductor avoid being deemed an "assessee in default" under the Income Tax Act, 1961.
ASA Global Impex Private Limited (petitioner) challenged the impugned order dated 25.02.2025, which confirmed the proposal in a Show Cause Notice dated 11.02.2025. The Respondents contended that the petitioner did not file Form 26A initially and filed it subsequently through online mode only as an "afterthought".
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The Respondent contended that the petitioner did not have its case covered under Section 201 and Section 40(a)(ia) of the Income Tax Act, 1961. The respondent also submitted that furnished certificates only in respect of 18 suppliers as against 25 suppliers.
The Bench of The Honourable Mr. Justice C. Saravanan observed that the last date for completing the assessment under Section 153 of the Income Tax Act, 1961, would have expired on 31.03.2025, and suggested that the impugned order may have been passed on 25.02.2025 on account of this deadline.
The Court noted that a reading of the impugned order indicated that the petitioner was neither heard nor granted time in response to its replies dated 15.02.2025 and 19.02.2025, even though the petitioner had sought time for giving further particulars.
The Court held that had the petitioner been given an adequate opportunity to file a reply and appear, there would have been no scope for interfering with the impugned order.
The Court quashed the impugned order dated 25.02.2025 and remitted the case back to the 3rd Respondent, the National Faceless Assessment Centre, to pass a fresh order.
The Court laid down the following directions that the fresh order is to be passed as expeditiously as possible, preferably within 9 months from the date of receipt of a copy of the order.
The court directed the petitioner must get ready with the additional reply and transmit it to the 3rd Respondent non-manually within 30 days from the date of receipt of the order, and keep a soft copy ready for uploading when intimation is given. The Writ Petition was disposed of with these observations
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