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2016 (9) TMI 392 - AT - Income TaxTDS u/s 192 - Interest u/s 201(1A) - non deduction of tax at source on payment of salary on monthly average basis - non mentioning of PAN No. of depositors on Form 15G /15H furnished by depositors with Bank - Held that:- The contention of the assessee that at the end of financial year there was no short deduction of TDS on payment of salary to various employees has not been controverted by the authorities below. Further, we find that the TDS on salary was deducted on the monthly average basis by Circle Office of persons responsible and it was automatic and there is no interference by the Brach. We further find that deduction of amount of tax from salary depend upon the various saving schemes adopted by various employees and some time the employees make delay in submissions of their Saving certificates. Further we find from the reply of assessee to learned CIT(A) that the employees had declared the other income to the Bank only in the month of March and further that some times increment and pay perquisites of employees is paid in the last month and therefore, all these reasons could contribute to some short deduction of TDS in some earlier months of the financial year but the fact remains that at the end of financial year there was no short deduction of TDS. We find that the non deduction of TDS on monthly average basis was due to technical reasons and moreover, the issue for non deduction on monthly average basis is decided in favour of assessee in the decision of Hon’ble Delhi High Court in the case of CIT vs. Marubeni India (Pvt.) Ltd. [2007 (8) TMI 40 - HIGH COURT, DELHI] The finding of learned CIT(A) that AR of the appellant has failed to furnish any evidence in support of the contention that the PAN were available with the persons responsible at the time of accepting form 15G/15H, is only a technical breach in view of the fact that learned CIT(A) passed the order dated 26.06.2014 whereas as per the list of persons submitted to Assessing Officer indicating the PAN Nos., it is observed that PAN Nos. of assessees to whom interest was paid without deduction of tax was issued in the years 2008-2011. The list of such payments is placed at (PB page 1 to 2). Therefore, the PAN Nos. of such deductees was available at the time of deduction of TDS, and therefore, the mentioning of the same on the declarations was only a technical breach. - Decided in favour of assessee
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