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2017 (4) TMI 1141 - AT - Income TaxTDS deducted but not remitted into government account - Short deduction of TDS - assessee in default u/s 201(1) & 201(1A) - Held that:- We find force in the arguments of the assessee for the reason that the assessee being a public sector bank normally comply with TDS as per the provisions of the Act. As claimed by the assessee, its TDS aspect has been taken care by centralised core banking system, which will automatically deduct TDS as per the provisions of the Act. Though, there are few technical issues, like nons-ubmission of declaration forms within due date, the same cannot be a valid reason for treating the assessee as an assessee in default u/s 201(1) of the Act, particularly when assessee explains the reasons for such mistakes. We further observe that the assessee has furnished all details and requested for one more opportunity to explain its case. Therefore, keeping in view overall facts and circumstances of the case, we deem it appropriate to remit the issue back to the file of the A.O. and direct the A.O. to examine the case with reference to the details furnished by the assessee and re-compute the short deduction of tax, TDS deducted but not remitted into government account and interest as per the provisions of the Act. Needless to say, the assessee is directed to furnish the necessary information without seeking any adjournments. Appeal filed by the assessee is allowed for statistical purposes.
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