Late Fee on TDS Return matter under appeal

[Suresh P]

In one of the TDS Return for the FY 2017-18, assessee mentioned wrong TAN and all other details including PAN of the deductee were correctly mentioned and deductees could claim TDS in their return of Income for that year. Matter came to the notice of Assessee when a notice was served upon him and he approached Jurisdictional TDS officer and made a request to correct the return with his acknowledgement together with a NOC from the holder of TAN mentioned in return.As the matter was oending with TDS officer Assessee did no do anything further.Later on a revised TDS return was filed with correct TAN. Subsequently a notice was received from IT Dept to pay late fee Aprox 70K in filing the TDS return lately from the due date to till correct return was filed.Matter went on to appeal and we made a request to CIT (A) and sought possibility to make request to CPC for a rectification u/s 154 .In this case return was filed but with clerical errors quoting wrong TAN and no harm has caused to the deductee and the dept has not affected by this act and the matter has been referred to Jurisdictional TDS Officer with acknowledgement.The late fee is charged to file tds return in time so that deductee is not deprived off not getting the TDS benefit but otherwise claimed by them in their return.

How to proceed with this case?

Is there any case law on this?

Thanks in Advance.

[DR.MARIAPPAN GOVINDARAJAN]

It requies detailed discussion. You may discuss with the Chartered Accountant or mail the same to me.

AI Summary

Late fee for delayed TDS return: challenge where clerical TAN error caused no prejudice, seek rectification under section 154. Late fee imposed for delayed TDS return filed with an incorrect TAN is contested where deductee details were otherwise correct and no prejudice resulted; assessee engaged the Jurisdictional TDS Officer with acknowledgement and a NOC, later filed a revised return, and seeks relief through appeal to the CIT(A) and rectification under rectification u/s 154.