TDS Default u/s 201 – Matter Remanded for Verification of Payees’ Tax Payment

Rao Khem Chand Vidya Vihar Samiti Vs ITO (ITAT Delhi) The ITAT Delhi dealt with a charitable trust registered u/s 12AA which was treated as assessee-in-default u/s 201/201(1A) for failure to deduct TDS on advertisement expenses and interest payments. The AO-TDS raised demand of TDS and interest and also levied late fee u/s 234E, which was confirmed by the CIT(A). The assessee argued that before declaring it as assessee-in-default, the AO must verify whether the payees had already paid tax as mandated under Explanation to section 191 and first proviso to section 201. The Tribunal admitted addit...