TaxTMI 
TaxTMI 
2022 (2) TMI 110
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....as raised following grounds of appeal: 1. The order of the Assessing Officer is bad in law and against the facts of the case. The Ld. CIT(A) erred in maintaining the same. 2. On the facts and in the circumstances of the case, proper and meaningful opportunity had not been allowed to assessee to put up the defense on the issues disputed in appeal, The Ld. CIT(A) has also not considered such fact while passing the order. 3. The Ld. CIT(A) has erred in maintaining the order of Assessing Officer of determination of amount payable for short deduction in so far as the one of the deductee has already paid tax on income which was the subject matter of short deduction of tax at source and recovery of tax cannot be made onc....
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....ssessee to be considered for adjudicating the appeal. Thus, the case was heard with the assistance of ld. DR and the submissions made by the assessee available on record which includes a paper book containing 42 pages. 3. Facts in brief are that the assessee is a Nationalized Bank and the present appeal is filed by the Nehru Nagar Branch Bhopal of Punjab National Bank. The assessee is required to deduct tax at source on the deposits. The issue in the instant appeal relates to deduction of tax at lower rate on the interest of Rs. 7,75,348/- paid/credited to Madhya Pradesh State Agro Industries Development Corporation Limited during quarter -2 of F.Y. 2007-08. Assessee was required to deduct TDS @ 20% but due to clerical mistake (as claime....
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....essee in default u/s. 201/201(A) and confirming a demand against the assessee for short deduction of tax at Rs. 71,874.69 and interest on short deduction at Rs. 66,681/-. 8. We notice that during Quarter -2 for F.Y. 2007-08 assessee paid/credited interest to Madhya Pradesh State Agro Industries Development Corporation Limited at Rs. 7,75,348/-. The assessee was required to deduct tax @ 20% but due to some clerical mistake (as stated by the assessee) tax was deducted at lower rate of 10%. The deductee claimed above is a Corporation run by Madhya Pradesh State Government. The interest income of Rs. 7,75,348/- received has been offered to tax. Copy of return of income and audited balance sheet is placed on records which support the fact tha....
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....ought to have been deducted at 20 per cent under the said provisions as against deduction of tax at 2 per cent under section 194C. The Assessing Officer, therefore, having held the assessee to be assessee-in-default for the shortfall in the amount of tax deducted at source, levied interest under section 201 (1A) on the amount of tax alleged to be short-deducted. On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer. On further appeal, the Tribunal confirmed the order of the Commissioner (Appeals). The further appeal filed by the assessee was also dismissed by the High Court. Thereafter, the assessee filed an application under section 254(2) for rectification of the order of the Tribunal on the ground that its alter....
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....nder section 271 C. [Para 10] In the instant case, the assessee had paid the interest under section 201 (1 A) and there was no dispute that the tax due had been paid by 'P'. It was Hot disputed that the circular was applicable to the facts situation at hand. [Para 11] Hence, the judgment of the High Court was accordingly, set aside. The appeal was to be allowed. 8. Thus, we find that above decision laid down the ratio that when the tax has been paid by the deductee-assessee, the tax could not be recovered once again from the assessee, It is the claim of the assessee society that the deductee has paid the taxes, hence, the assessee is not liable to be for demand on account of short deduction of TOS, However....