TMI Blog2016 (9) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med the action of Assessing Officer whereby the Assessing Officer charged interest u/s 201(1A) of the Act for non deduction of tax at source on payment of salary on monthly average basis. The assessee is further aggrieved with the action of learned CIT(A) by which he had confirmed the charging of interest u/s 201(1) 201(1A) for non mentioning of PAN No. of depositors on Form 15G /15H furnished by depositors with Bank. 3. The brief facts of the case are that the assessee is the branch of Punjab National Bank at Muktsar. During the course of survey u/s 133 A of the Act, the Assessing Officer observed that person responsible was not deducting tax at source on payment of salary on monthly average basis. Therefore, the Assessing Officer cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial year there was no short deduction of tax and therefore, it was prayed that interest charged u/s 201(1) deserves to be deleted. 7. As regards the other issue of creation of demand for short deduction on interest for non mentioning of PAN No. on the declaration u/s 15G/15H, the learned AR submitted that the complete list of persons to whom interest exceeding ₹ 10,000/- along with their PAN Nos. were furnished to the assessee during the proceedings and the non mentioning of PAN Nos. on the declaration was only a technical default and therefore, the learned CIT(A) should have deleted the demand. Reliance in this respect was placed on the case law of ITAT, Visakhapatnam Bench, in the case of DCIT Circel-3(1) TDS Vijayawada Vs. M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hort deduction of TDS. Before learned CIT(A) the assessee had relied upon the case law decided by Hon ble Delhi High Court in the case of CIT vs. Marubeni India (Pvt.) Ltd., in which it was held that when under certain circumstances there is short deduction of tax the assessee cannot be held to be in default u/s 201(1) of the Income Tax Act, 1961. The assessee had also filed the copy of the judgment, however, the learned CIT(A) though observed that issue has been decided in favour of assessee in a number of cases, but he did not adjudicate on the issue holding that assessee had not raised the issue before him. However, we find that the non deduction of TDS on monthly average basis was due to technical reasons and moreover, the issue for non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no requirement of deduction of TDS u/s 194A of the Act. The requirements of Section 206AA is also fulfilled on the date of submission as the PAN No. of all deductees are available with the Bank on the date of submissions of declaration in Form No.15G/15H, on the date when payment is made. It was also submitted to learned CIT(A) that the list of persons to whom interest of 10,000/- or more was paid and TDS was not deducted along with PAN of all deductees was submitted to Assessing Officer and this fact is noted by learned CIT at page-4 of his order. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act remains that during the proceeding before the assessing officer, the assessee has furnished declarations in the prescribed format in respect of interest payment/credit made to depositors wherein tax was not deducted at source. The assessing officer has rejected the declaration forms by assuming that the assessee has not obtained those form prior to the date of payment/credit of interest. In our view, the rejection of the declarations on mere presumption and surmises by he assessing officer is not correct. Fact remains that the assessee has submitted the declaration forms before the assessing officer. Therefore, instead of pointing out certain defects, deficiencies/technical objections, the assessing officer should have accepted the decl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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