2018 (3) TMI 577

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....1(1) and 201(1A) of the I.T. Act. 2. The facts are that the assessee is a deductor, i.e., the U.P. Government Construction Division. Survey proceedings were conducted on 16.12.2013 in order to verify the correct applicability of the TDS provisions. It was observed by the AO that the assessee had failed to deduct and deposit TDS u/s 194C of the Act on an amount of Rs. 3,27,460/- during the F.Y. 2011-12. It was also seen that the deductor had also not been filing quarterly statement of 24Q & 26Q for F.Y. 2011- 12 and hence, assessee had rendered itself liable to be treated as an assessee in default u/s 201(1) of the I.T. Act, 1961. 3. The ld. CIT(A) has held as follows: "5.3 I have gone through the assessment order, submissions of the ass....

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....arged TDS @ 2.25%, worth Rs. 41,541/-; that the AO had treated the contractors as having no PANs and had worked out the short deduction at Rs. 3,27,460/-; and that after correction of PANs, there remained no short deduction and the demand of Rs. 4,17,508/- stood revised to that of Rs. 2,460/-. As evidence, the assessee filed copies of returns in 24Q and 26Q and receipts. 6. The CIT(A) observed that it was not a case where the assessee had not made TDS; that the assessee had made TDS by treating the contractors as having PANs @ 2.25%; and that the AO had observed that since the PANs for these contractors were not available, the assessee should have made TDS @ 20% and that since the assessee also had not filed its quarterly statements in 24Q....

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....bserved by the ld. CIT(A) herself, due taxes, including interest, have been, in fact, recovered. The fault in deduction stands rectified and also accepted by the Department, in as much as the outstanding demand now amounts to a total of Rs. 2,460/-. The rest of the demand no longer survives. Recovery of taxes was made. As such, the Department has accepted the assessee's stand that it was not a case of no PANs, but that of mismatch of PANs. That being so, the assessee cannot be treated as an assessee in default. 10. Coming to the question whether later incidents / developments can be considered or not, an appeal is a continuation of the assessment proceedings. An order u/s 201(1) of the Act is an order assessing an assessee as an assessee i....