Case Law Details
Income Tax Officer Vs M/s Umatech (ITAT Lucknow)
We find that necessary TDS has been deducted by the assessee with regard to the labour charges paid and the required documents are also on record which essentially means that there has been no loss to the Revenue. The TDS was deducted and deposited in the Government Treasury and in the challan, in which amount was deposited, instead of TAN it was mentioned PAN. The Assessing Officer should have looked into the entirety of the proceedings being a quasi judicial authority whether there is any loss to the Revenue or whether there is any fault on the part of the assessee so as to not following the required procedure laid down by the law. Here we find, as appearing on record, especially in the order of the ld. CIT(A) that necessary TDS was deducted and it was deposited in the Government Treasury. All these are on record and only there is a technical error that in the challan PAN number of the assessee is mentioned instead of TAN in the relevant column on account of bona-fide mistake, for which assessee should not be penalized or punished when there is no loss to the Revenue.
FULL TEXT OF THE ITAT JUDGMENT
This appeal preferred by the Revenue emanates from the order of the ld. CIT(A)-1, Lucknow dated 26/7/2016 on the following grounds of appeal:-
1. The CIT(A) has erred in law and on facts in deleting the addition of Rs. 2,08,42,101/- which was made u/s 40a(ia) of the I.T. Act, 1961 without appreciating the fact that the assessee was claiming that he had deducted tax of Rs.4,29,646/- on 31.03.2009 on total labour payment of Rs.2,08,42,1017-, but surprisingly this amount of Rs.4,29,646/- was not appearing in the 26Q return filed by the assessee for last quarter. Thus, the assessee’s claim that he had deposited amount of Rs.4,29,646/- on 29.09.2009 is not correct as according to TDS return for quarter IV, only tax of Rs.1,87,793/- was deducted in the last quarter.
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