2025 (8) TMI 1512

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....lowing grounds of appeal: "1. Ld. CIT(A) NFAC has erred in confirming the order of A.O. levying penalty U/s. 201(1) of Rs. 42,924 and interest u/s. 201(1A) of Rs. 40,866 aggregating Rs. 83,790/- for late submission of Forms 15G and 15H for non-deduction of TDS from payment of interest to depositors. In as much as, Ld. A.O. as well Hon. CIT(A) has not disputed that: i. Form No. 15G and 15H are filed. There is delay of 3 months. ii. The deductees and assessed to tax and have paid tax as per Return of Income filed. iii. The interest U/s. 201(1A) is wrongly charged since there is no liability to deduct tax. iv. The marginal delay is technical default and in view of the above facts TDS U/s. 201(1) and interest U/s. 201(1A) cannot be lev....

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.... Act for the delay. The Assessing Officer computed the total demand at Rs. 83,790/-, comprising Rs. 42,924/- as TDS and Rs. 40,866/- as interest. 4. Aggrieved by this order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). During appellate proceedings, the assessee admitted that the forms were indeed filed late but submitted that the delay was due to an inadvertent oversight by their accountant. The CIT(A), however, held that such an explanation did not constitute a valid reason for non-compliance with the statutory provisions. The CIT(A) also noted that while he had the authority to condone delays in filing appeals, he does not have the power to condone delays in the filing of statutory forms like Form No. 1....

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....e already offered the interest payment made by the assessee in their respective returns of income (as evidenced by Form 26A) and also taking into consideration the fact that such delay in filing of Form 15G/H was only a small / minor technical default, this is not a fit that where the assessee should be levied with penalty and interest under Section 201/201(1A) of the Act. 7. In response, Ld. DR. placed reliance on the observations made by the CIT(A) and Assessing Officer in their respective orders. 8. We have heard the rival contentions and perused the material on record. 9. In the case of Bhushan Logistics (P.) Ltd. vs. Income-tax-Officer [2022] 140 taxmann.com 521 (Mumbai - Trib.), the ITAT held that where assessee made payment ....