TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 1141
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....come Tax Act, 1961 (hereinafter called as 'the Act') was conducted on 24.3.2012 in the office premises of Chief Manager, State Bank of India, Town branch, Ongole, Prakasam District to verify the TDS compliances. During the course of survey, it was noticed that the assessee was not filing quarterly TDS statements regularly for the financial years 2008-09 to 2011-12. It was further observed that the assessee has remitted tax deducted at source into the Central Government account belatedly. Consequent to survey, proceedings has been initiated u/s 201(1) of the Act. During the course of proceedings, the assessing officer requested the assessee to furnish complete details of deposits, monthwise interest payments to depositors and particulars of ....
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....ed to furnish PAN numbers within the stipulated time, TDS shall be deducted at appropriate rates and remitted to the government account. In so far as short deduction of tax at source, the assessee submitted that the core banking system will automatically recover tax as and when interest is credited/paid to the depositor's account and kept in a separate account till the same is remitted to the government account. Meantime, any depositor furnishes form 15H/15G, the core banking system automatically reverses the TDS deducted on interest payments and the net balance, if any will be remitted to the government account within the due date specified under the Act. In few cases, the depositors have furnished form 15H/15G belatedly because of this in....
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....hort deduction of tax and interest u/s 201(1) & 201(1A) of the Act. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 7. The Ld. A.R. for the assessee, submitted that the Ld. CIT(A) was erred in confirming the orders of the A.O. determining the demand u/s 201(1) & 201(1A) of the Act. The Ld. CIT(A) failed to appreciate the entire facts relating to raising of demand in respect of short deduction of tax at source, TDS deducted but not remitted into central government account and interest on short deduction of TDS, despite all details were brought before the A.O. and were produced before the CIT(A) and thereby erred in confirming the demand on the ground that the assessee has failed to furnish the details called for, which a....
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....deduction of tax, TDS deducted but not remitted into government account and interest on short deduction of tax and interest on delay in remittance of tax into government account based on the information submitted by the assessee. According to the A.O., the assessee is having a practice of deducting tax at source on interest payments periodically, but not remitting the TDS deducted from interest account after collecting form 15G/15H from the depositors. The A.O. further observed that the assessee has deducted tax at source as and when interest is credited or paid to the respective depositor's account, but not paid the amount within the due date specified under the Act. The assessee also failed to furnish necessary form no.15G/15H at the time....
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....ully complied with TDS provisions and merely because there is some technical defects, the assessee cannot be held as the assessee in default. 10. Having heard both sides, we find force in the arguments of the assessee for the reason that the assessee being a public sector bank normally comply with TDS as per the provisions of the Act. As claimed by the assessee, its TDS aspect has been taken care by centralised core banking system, which will automatically deduct TDS as per the provisions of the Act. Though, there are few technical issues, like nonsubmission of declaration forms within due date, the same cannot be a valid reason for treating the assessee as an assessee in default u/s 201(1) of the Act, particularly when assessee explains t....