TMI Blog2023 (1) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 194C of the Act @0.25% as per the lower deduction certificate issued u/s 197 to the holding company of the assessee company. Based on the certificate issued, the assessee has deducted TDS @ 0.25% as mandated in the certificate. While depositing the TDS deducted, the assessee has wrongly mentioned the TAN allotted for Delhi office instead of Bina Madhya Pradesh Office. This fact was also brought to the notice of the Department immediately but the defect could not be cured in the absence of any provision for such type of rectification. CIT(A), in the factual matrix, has taken a just and fair decision and reversed the demand under Section 200A attributable to merely wrong mention of TAN in the TDS deposit challan. We see no error in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrong TAN instead of correct TAN on which the lower deduction certificate was issued under Section 197 to the holding company of the assessee. Due to the inadvertent mistake in quoting TAN of different unit, the Assessing Officer created a demand u/s.200A alleging lesser deduction of tax on payments made to holding company. 3. Aggrieved by the demand raised under Section 200A of the Act, the assessee preferred appeal before the CIT(A). The CIT(A) took note of the factual matrix and called for the remand report from the Assessing Officer. The CIT(A) found merit in the plea of the assessee on first principles towards inadvertent mistake in mentioning wrong TAN while applying lower percentage of tax rate under Section 194C of the Act. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being bona fide has to be rectified. The Assessing Officer is accordingly directed to allow consequential relief, after considering the above factual position with due verification. Thus, appellant succeeds partly. 4. On perusal of the first appellate order and the factual matrix pointed out on behalf of the assessee, we find that the order of the CIT(A) in granting relief to the assessee is founded on fair play and natural justice. In the instant case, the assessee has obtained two TAN from the Department in its name, one is taken for office at Bina Madhya Pradesh and another one is taken at Delhi. The assessee has deducted TDS on contractual payments to its holding company under Section 194C of the Act @0.25% as per the lower deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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