Appeal Allowed in Tax Dispute: Interest Charges Deleted, Ruling in Favor of Appellant

The Tribunal allowed the appeal filed by the assessee, ruling in favor of the appellant on both issues. The demand for charging interest under sections 201(1) & 201(1A) for non-deduction of tax on salary payments and for non-mentioning of PAN No. on Form 15G/15H was deleted due to technical reasons and technical breaches respectively. The Tribunal found in favor of the appellant citing precedents and relevant case laws, leading to the deletion of the demands by the authorities.

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Issues:
1. Non-deduction of tax at source on payment of salary on a monthly average basis
2. Charging of interest under sections 201(1) & 201(1A) for non-mentioning of PAN No. of depositors on Form 15G/15H

Analysis:
1. The appeal was against the order confirming the action of Assessing Officer for charging interest u/s 201(1A) for non-deduction of tax on salary payments. The Assessing Officer observed discrepancies during a survey and created a demand for not deducting TDS on a monthly average basis. The appellant argued that TDS was automatically deducted by the Circle Office and there was no short deduction at the end of the financial year. The Tribunal found the non-deduction was due to technical reasons and ruled in favor of the appellant, citing precedents supporting the appellant's case. The demand was deleted as it was a technical breach.

2. The second issue involved the creation of a demand for short deduction of interest due to non-mentioning of PAN No. on Form 15G/15H. The appellant provided a list of deductees with PAN numbers to the Assessing Officer, indicating a technical error. The Tribunal agreed with the appellant's submissions, noting that the PAN numbers were available at the time of deduction, and the mentioning of PAN on declarations was a technical breach. Citing relevant case laws, the demand was deleted as the deductors had furnished declarations in the prescribed manner. The Tribunal upheld the appellant's arguments and allowed the appeal, deleting the demand created by the authorities below.

In conclusion, the Tribunal allowed the appeal filed by the assessee, ruling in favor of the appellant on both issues. The order was pronounced in open court on 27.07.2016.

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