TaxTMI 
TaxTMI 
2016 (9) TMI 392
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....201(1A) of the Act for non deduction of tax at source on payment of salary on monthly average basis. The assessee is further aggrieved with the action of learned CIT(A) by which he had confirmed the charging of interest u/s 201(1) & 201(1A) for non mentioning of PAN No. of depositors on Form 15G /15H furnished by depositors with Bank. 3. The brief facts of the case are that the assessee is the branch of Punjab National Bank at Muktsar. During the course of survey u/s 133 A of the Act, the Assessing Officer observed that person responsible was not deducting tax at source on payment of salary on monthly average basis. Therefore, the Assessing Officer created the demand u/s 201(1A) amounting to Rs. 12,460/- for not deducting TDS on monthly ....
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....u/s 201(1) deserves to be deleted. 7. As regards the other issue of creation of demand for short deduction on interest for non mentioning of PAN No. on the declaration u/s 15G/15H, the learned AR submitted that the complete list of persons to whom interest exceeding Rs. 10,000/- along with their PAN Nos. were furnished to the assessee during the proceedings and the non mentioning of PAN Nos. on the declaration was only a technical default and therefore, the learned CIT(A) should have deleted the demand. Reliance in this respect was placed on the case law of ITAT, Visakhapatnam Bench, in the case of DCIT Circel-3(1) TDS Vijayawada Vs. M/s. Vijaya Bank, Kothagudem, 238 ITR 282 . Similarly, reliance was placed on the order of ITAT, Jodhpur ....
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....le Delhi High Court in the case of CIT vs. Marubeni India (Pvt.) Ltd., in which it was held that when under certain circumstances there is short deduction of tax the assessee cannot be held to be in default u/s 201(1) of the Income Tax Act, 1961. The assessee had also filed the copy of the judgment, however, the learned CIT(A) though observed that issue has been decided in favour of assessee in a number of cases, but he did not adjudicate on the issue holding that assessee had not raised the issue before him. However, we find that the non deduction of TDS on monthly average basis was due to technical reasons and moreover, the issue for non deduction on monthly average basis is decided in favour of assessee in the decision of Hon'ble Delhi H....
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....fulfilled on the date of submission as the PAN No. of all deductees are available with the Bank on the date of submissions of declaration in Form No.15G/15H, on the date when payment is made." It was also submitted to learned CIT(A) that the list of persons to whom interest of 10,000/- or more was paid and TDS was not deducted along with PAN of all deductees was submitted to Assessing Officer and this fact is noted by learned CIT at page-4 of his order. The finding of learned CIT(A) that AR of the appellant has failed to furnish any evidence in support of the contention that the PAN were available with the persons responsible at the time of accepting form 15G/15H, is only a technical breach in view of the fact that learned CIT(A) passed ....
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.... declarations in the prescribed format in respect of interest payment/credit made to depositors wherein tax was not deducted at source. The assessing officer has rejected the declaration forms by assuming that the assessee has not obtained those form prior to the date of payment/credit of interest. In our view, the rejection of the declarations on mere presumption and surmises by he assessing officer is not correct. Fact remains that the assessee has submitted the declaration forms before the assessing officer. Therefore, instead of pointing out certain defects, deficiencies/technical objections, the assessing officer should have accepted the declaration. Once a declaration is received from the depositor in the prescribed manner, the deduct....