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2016 (9) TMI 392 - ITAT AMRITSAR

2016 (9) TMI 392 - ITAT AMRITSAR - TMI - TDS 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 .....

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rch 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 o .....

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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 - I.T.A No. 562(Asr)/2014 - Dated:- 27-7-2016 - .....

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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 Of .....

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exceeding ₹ 10,000/- and deductees had not furnished his PAN Nos. on the declarations and therefore, the assessee should have deducted TDS @ 20%. The person responsible submitted that PAN No. of deductees were available with the Bank and non mentioning of PAN No. on 15G/15H was a technical error and therefore, it was submitted that since it was an inadvertently bonafide error and therefore, the demand should be deleted. However, Assessing Officer did not accept the contention of assessee .....

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cy arising out of any previous deduction or failure to deduct during the same financial year. It was further submitted that at the end of the financial 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 .....

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in the case of ITO Vs. Pearl Organic Coatings, reported in 84 TTJ 0802. 8. The learned DR, on the other hand, heavily placed his reliance on the order of authorities below. 9. We have heard the rival parties and have gone through the material placed on record. As regards the first issue of non deduction of TDS on monthly average basis, we find 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 n .....

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IT(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. Before learned CIT(A) the assessee had relied upon the case law decided by Hon ble Delhi Hi .....

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im. However, 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.. We find that though assessee before learned CIT(A) had not raised specifically this ground of appeal, but ground no.3 raised before learned CIT(A) clearly indicates that assessee was aggrieved with th .....

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above, the Ground No.1 is allowed. 10. As regards Ground No.2, we find that assessee in proceeding u/s 201(1) and 201(1A) had provided a list of persons to whom the interest of 10,000/- or more was paid and TDS was not deducted along with PAN No. of all deductees. This is mentioned by Assessing Officer at page 4 of his order and therefore, the non mentioning of TDS was only a technical error. We further find that the same submissions were made before learned CIT(A) and it was submitted as under .....

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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 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 w .....

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case of DCIT Circle-3(1), (TDS) Vijayawada vs. M/s Vijaya Bank, Kothagudem under similar facts and circumstances has decided the issue vide para-7 which is reproduced below. 7. We have heard the submissions of the parties, perused the orders of the revenue authorities as well as other materials on record. It is the claim of the department that the assessee has not been able to submit declarations in form 15G in all the cases at the time of survey. Whereas, the assessee has asserted that during .....

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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 .....

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