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2018 (11) TMI 480 - AT - Income TaxShort deduction of TDS on account of mentioning of the wrong PAN number - DTAA provision applicability - Held that:- Demand of short deduction of tds is not sustainable as it is not the case of short deduction but it is the case of wrongly applying the TDS rate by losing sight of DTAA between India and Netherland. Insofar as demand for fourth quarter (FY 2012-13) deduction for ₹ 2,10,200/- is concerned, the Revenue has treated this transaction with incorrect PAN numbers and has applied TDS @ 20%. It is also not in dispute that when the correct PAN numbers of the concerned employees is mentioned in the revised TDS return, the demand would come to nil. The assessee has agreed to deposit interest demand as well as late filing fee on account of late deposit of tax. When we examine all final assessment is still pending with the Department, the appeal filed by the assessee before ld. CIT (A) was not maintainable as the assessee has categorically made submission that interest demand on account of late deposit of tax and late filing of return, demand is being deposited by the assessee, there was no question of deleting the demand raised as all these facts were to be examined by the AO during assessment on the basis of submissions made by the assessee. Section 200A of the Act is a self-contained procedure to process the statement of tax deduction at source after making adjustment of any arithmetic error or incorrect claim. The assessee has made an undertaking before the Commissioner that it is revising the return for incorporating the PAN numbers of those employees which will otherwise lead to the demand nil and in case of demand for second quarter for FY 2013-14, no interest shall be charged as the demand itself would not be sustainable. CIT (A) has erred in deleting the demand particularly when assessment proceedings qua the year under assessment are already pending with the Department, hence present appeals filed by the Revenue are allowed.
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