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2016 (10) TMI 850 - ITAT JAIPUR

2016 (10) TMI 850 - ITAT JAIPUR - TMI - Short deduction of tds - Demand of the differential TDS @20% - incorrect pan number furnished - Held that:- Primary onus is on the person entitled to receive income on which tax is deductible at source to furnish his PAN and in case such PAN is invalid or does not belong to the said person by virtue of deeming fiction, it has been stated that he has not furnished his PAN to the deductor. In such a scenario, the onus shifts on the person responsible for ded .....

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file the correction statement. In our view even though the primary onus is on Shri Lala Ram to furnish his correct PAN number to the assessee, what is equally important is that the assessee should verify at the time of making payments or at the time of credit in his books of accounts where Shri Lala Ram has submitted his correct PAN number. - In the instant case, the assessee has failed to discharge its obligation to verify the correct PAN and it is only at the time of processing of the TDS .....

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not see any infirmity in the order of the AO in raising demand of the differential tax that the assessee should have deducted by virtue of submission of incorrect PAN by Shri Lala Ram. At the same time, the assessee shall be at liberty to recover the said amount from Shri Lala Ram. With the above observations the ground taken by the assessee is disposed off. - Decided against assessee - ITA No. 175/JP/14 - Dated:- 14-9-2016 - SHRI A.D. JAIN, JM AND SHRI VIKRAM SINGH YADAV, AM For The Assessee : .....

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CIT(A) erred in law as well as on the facts of the case in sustaining the demand of ₹ 1,75,677/- on account of short deduction of TDS and interest thereon raised by the AO u/s 201(1) and 201(1A). The demand so raised by the ITO (TDS) and partly sustained by the Ld. CIT(A) is totally contrary to the provisions of law and facts on the record and hence the additions may kindly be deleted in full. 2. Firstly, during the course of hearing, ground No.1 was not pressed hence the same is dismisse .....

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23.05.2013. Now, out of three persons, the PAN of two persons namely M/s Yadav Construction Co. And Shri Ramdhan Jat have been corrected and consequent demand has already been reduced. The PAN submitted of Shri Lala Ram is still incorrect/defective and the current demand of ₹ 60,256/- is on account of short deduction on payment to Shri Lala Ram and interest of ₹ 39,000/-thereon. Hence this appeal before us. 2.2 The finding of the ld. CIT(A) is as under: I have carefully considered t .....

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PAN in respect of shri Lala Ram is still found to be incorrect against which the demand on account of short deduction is arrived at ₹ 60,022/-. This fact was also admitted by the AR of the appellant during the appellate proceedings. similarly the short deduction of tax amounting to ₹ 36/- is also pointed out by the system and this fact was also not disputed by the appellant. Accordingly raising of such demand to the extent of ₹ 60,022/- and ₹ 36/- and consequential inter .....

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And Ramdhan Jat. The appellant case is that in respect of these two persons correct PAN have been mentioned while filing the correction statement. The fact that there PANs are correct is even proved from the information downloaded from the CPC portal. In this background the AO is directed to again verify such facts and if the appellant has filed correction statement properly by mentioning correct PANs then such demand may be reduced/deleted. Subject to such verification the grounds of appeal ar .....

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e intimation u/s 200A it has come to know that the PAN No. of Shri Lala Ram is wrong and the demand has been raised on account of short deduction due to by taking the TDS rate of 20% in place of 2% or applicable rate, deeming the same as non PAN case. The assessee thereafter tried to contract the person Shri LalaRam but he could not provide his correct PAN No, and that is why the assessee could not file the correction statement for correction of the PAN of Shri Lala Ram. Further we also clarify .....

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TDS and secondly at the worst if there was any short deduction due to wrong PAN the same was beyond, controlled to the assessee or technical or venial breach of law for which no penalty can be imposed kindly refer Hindustan Steel vs. State of Orrisa (supra). Saraswati Electronics vs. ITO 292 ITR 411 (Kar.) also refer Branch Manager, Punjab National Bank vs. Add. CIT 140 TTJ 622 (Luck). There is no dispute about the fact that the appellant has deposited amount of the tax deducted at source under .....

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fault without a reasonable cause. If we see in depth about the intention of legislature of bringing the provisions of filing of TDS return, it is clear that the requirement of the TDS return filing is to ensure that whether the assessee has deducted correct tax or not or after deducting the same whether paid to the account of central govt. or not and collection of tax from recipients of income through the deductor. If all the thing has been done and the purpose of the revenue is fulfilled and wh .....

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in its hand (i.e. deduction and deposit of tax). In which there was no default of the assessee if any default was of the recipients, which was beyond the control of the assessee for which he should not be suffered or penalized. Although the above decision on penalty but the ratio of the same is also applicable in the present case. Therefore keeping in view the totality of the above facts, circumstances and the legal position, the AO may kindly be directed to delete the demand so raised. 2.4 The .....

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B, shall intimate his Permanent Account Number to the person responsible for deducting such tax under that Chapter. Further, u/s 139A(5B) where any sum or income or amount has been paid after deducting tax under Chapter XVIIB, every person deducting tax under the chapter shall quote the Permanent Account Number of the person to whom such sum of income or amount has been paid by him in all the statement prepared and delivered in accordance with the provisions of section 200(3) of the Act. 2.6 Fur .....

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rate specified in the relevant provision of this Act, (ii) at the rate or rates in force, or (iii) at the rate of twenty percent. Sub-section (6) of section 206AA further provides that where permanent account number provided to the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his Permanent Account Number to the deductor and the provisions of sub-section (1) shall apply accordingly. 2.7 On perusal of the above provisions, it is cl .....

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