9911796707
TMI Blog2025 (5) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... t] in respect of financial year [FY] 2015-16. 2. The subject matter of the said notice indicates that it is for the verification under Section 201 (1)/201 (1A) of the Act and for furnishing details/information. It is the petitioner's contention that Section 201 (1) of the Act does not contemplate any proceedings, which are akin to assessment proceedings, for assessment of the obligation to deduct and deposit the tax at source [TDS]. In addition to the above, the petitioner also submits that there is no basis for initiating any proceedings for passing an order under Section 201 (1) of the Act as there is no failure on the part of the petitioner to deduct and deposit the TDS. 3. At the outset, it is relevant to refer to Section 201 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to deduct and pay such tax. (1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,- (i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and (ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 153 shall, so far as may, apply to the time limit prescribed in sub-section (3). Explanation. -For the purposes of this section, the expression "accountant" shall have the meaning assigned to it in the Explanation to sub-section (2) of section 288. 4. Section 201 (1) of the Act, essentially, stipulates that a person including the principal officer of the company, who is obliged to deduct TDS does not do so or fails to deposit the tax after deducting the same, would be deemed to be an assessee in default in respect of such tax. Sub-section (3) of Section 201 of the Act stipulates that no order could be passed under sub-section (1), holding a person to be an assessee in default for failure to deduct the whole or any part of the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs 23,85,46,666 u/s 194J of the Act. It is stated that to verify the said defaults, proceedings u/s 201 (1) were initiated by the Respondent vide the impugned notice dated 19.03.2021. Therefore, the contention of the Petitioner that there is no material with respondent to hold the Petitioner as defaulter in the fulfilment of the obligation to deduct tax at source is vehemently denied." 6. The learned counsel appearing for the petitioner submits that the petitioner had deducted tax at a lower rate as the payee had secured a certificate from the concerned Assessing Officer for deduction of tax at a lower rate. He has also drawn the attention to the petitioner's response to the averments made in the counter affidavit as set out above. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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