Non-Deduction of TDS: ITAT enables assessee to produce Form 26A as additional evidence

In this case it was submitted by the ld. Sr. DR that the only issue in the appeal of the assessee was that TDS had not been deducted in respect of payments made to M/s Sundaram Finance Ltd. and M/s Gulshan Freight Carrier. It was the submission that Form 26A had been produced before the ld.CIT(A) but had not been produced before the AO. Consequently, the ld. CIT(A) had refused to admit the Form No.26A on the ground that it was in the nature of fresh evidence. It was the submission that the order of the ld. CIT(A) is liable to be upheld.

ITAT after considering the rival submission and the grounds of appeals noted that a perusal of the facts and present case clearly shows that the assessee has categorically admitted that he was suffering from an ailment, which resulted in not being able to produce the evidence before the AO. Admittedly, form No.26A has also been produced before the ld. CIT(A).

Further, the Tribunal Noted that once Form 26A is produced before the lower authorities, then levy u/s. 201 of the Act would not be called for.

Admittedly, although Form 26A has not been produced before the AO, the availability of form 26A is also not in dispute.

The proceeding before the ld. CIT(A) is an extension of the proceedings before the AO. This being so, as it is only a technical breach, in the interest of justice, issues in these appeals are being restored to the file of the AO so as to enable the assessee to produce the evidences before the AO to substantiate its claim.