TaxTMI 
TaxTMI 
2025 (5) TMI 625
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....1 of the Income Tax Act, 1961 [the Act] in respect of financial year [FY] 2015-16. 2. The subject matter of the said notice indicates that it is for the verification under Section 201 (1)/201 (1A) of the Act and for furnishing details/information. It is the petitioner's contention that Section 201 (1) of the Act does not contemplate any proceedings, which are akin to assessment proceedings, for assessment of the obligation to deduct and deposit the tax at source [TDS]. In addition to the above, the petitioner also submits that there is no basis for initiating any proceedings for passing an order under Section 201 (1) of the Act as there is no failure on the part of the petitioner to deduct and deposit the TDS. 3. At the outset, it is ....
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....on, unless the Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct and pay such tax. (1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,- (i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and (ii) at one and one-half per cent for every month or part of a month on the amount of s....
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....bsection (3) of section 200, whichever is later. (4) The provisions of sub-clause (ii) of sub-section (3) of section 153 and of Explanation 1 to section 153 shall, so far as may, apply to the time limit prescribed in sub-section (3). Explanation. -For the purposes of this section, the expression "accountant" shall have the meaning assigned to it in the Explanation to sub-section (2) of section 288. 4. Section 201 (1) of the Act, essentially, stipulates that a person including the principal officer of the company, who is obliged to deduct TDS does not do so or fails to deposit the tax after deducting the same, would be deemed to be an assessee in default in respect of such tax. Sub-section (3) of Section 201 of the Act s....
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....he Petitioner in its Audit Report in Form No. 3CD at column 34(a) wherein the Petitioner has been flagged for deduction of tax at less than the specified rate on payment of Rs 23,85,46,666 u/s 194J of the Act. It is stated that to verify the said defaults, proceedings u/s 201 (1) were initiated by the Respondent vide the impugned notice dated 19.03.2021. Therefore, the contention of the Petitioner that there is no material with respondent to hold the Petitioner as defaulter in the fulfilment of the obligation to deduct tax at source is vehemently denied." 6. The learned counsel appearing for the petitioner submits that the petitioner had deducted tax at a lower rate as the payee had secured a certificate from the concerned Assessing Offi....