https://www.taxtmi.com/caselaws?id=776498 The ITAT Chennai allowed the appeal of the assessee against the demand for short deduction of TDS under section 200A due to non-linking of PAN with Aadhaar by the payee. The tribunal noted that the PAN was active at the time of deduction and the TDS was deducted at 1%. The payee had filed the return including the transaction income and linked PAN with Aadhaar subsequently, paying the penalty. The tribunal emphasized the purpose of the provisions to ensure compliance by the payee, not to penalize the payer for unintentional lapses. It also considered the extended timeline for PAN-Aadhaar linking under Circular 9 of 2025 and held that strict timelines should not be retrospectively applied. Consequently, the demand for 19% short deduction was deleted. en-us Thu, 31 Jul 2025 00:00:00 +0530 Tue, 12 Aug 2025 08:32:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776498 The ITAT Chennai allowed the appeal of the assessee against the demand for short deduction of TDS under section 200A due to non-linking of PAN with Aadhaar by the payee. The tribunal noted that the PAN was active at the time of deduction and the TDS was deducted at 1%. The payee had filed the return including the transaction income and linked PAN with Aadhaar subsequently, paying the penalty. The tribunal emphasized the purpose of the provisions to ensure compliance by the payee, not to penalize the payer for unintentional lapses. It also considered the extended timeline for PAN-Aadhaar linking under Circular 9 of 2025 and held that strict timelines should not be retrospectively applied. Consequently, the demand for 19% short deduction was deleted. Case-Laws Income Tax Thu, 31 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776498