Vendor's PAN Validated, 20% TDS Quashed for Aadhaar-Linked PAN.

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Full Text of the Document

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....The High Court quashed the impugned orders, holding that Section 206AA, mandating 20% TDS rate for invalid PAN, was not applicable. The vendor had linked his PAN with Aadhaar by paying late fee, rendering his PAN valid. The petitioners remitted payment against vendor's valid PAN and filed Form 26QB mentioning the same. The departmental website accepted the filing without indicating PAN invalidity. Thus, deducting TDS at 20% rate by deeming vendor's PAN invalid was contrary to facts and violated natural justice principles.....