ABL Engineering Company Vs ITO (ITAT Nagpur Bench)
Inoperative Is Not Invalid: ITAT Deletes ₹3.77-Lakh TDS Demand u/s 206AA Where Valid PAN Was Furnished but Not Linked with Aadhaar
Four-Day Delay Condoned
The assessee challenged the order dated 30.04.2026 passed by the CIT(A)/NFAC, confirming a demand of ₹3,77,230 raised by CPC-TDS u/ss 200A/206CB.
The appeal before the Tribunal was delayed by four days. The assessee filed a condonation application supported by an affidavit.
After examining the explanation & hearing both parties, the Tribunal found that the delay was neither intentional nor deliberate. Following Collector, Land Acquisition v. Mst. Katiji & Inder Singh v. State of Madhya Pradesh, the four-day delay was condoned in the interest of justice.
TDS Deducted at 1% on Contract Payment
The assessee was a partnership firm engaged in manufacturing, repair, job work & general fabrication of machinery.
During the relevant period, it made contractual payments aggregating to ₹19,14,000 to M/s Vijay Electronics. Tax was deducted at 1% u/s 194C & deposited in the Government treasury.
In its quarterly TDS statement, the assessee quoted the deductee’s PAN as ENDPK4855B.
CPC-TDS processed the statement & raised a demand of ₹3,77,230 for alleged short deduction of tax. The sole basis of the adjustment was that the deductee’s PAN was shown as inoperative.
