2016 (8) TMI 371 - HC - Income Tax

Late issuance of TDS certificate - late payment of tax deducted into the Government treasury - Held that -Income Tax Appellate Tribunal was right in law in holding that late payment of tax deducted into the Government treasury is a reasonable cause for late issuance of TDS certificat. The view taken by the Tribunal is just and proper and it is not required to be interfered with. Therefore, the question posed for our consideration is answered in favour of the department and against the assessee.

Summary

Issues:
Late payment of tax deducted into the Government treasury causing late issuance of TDS certificate.

Analysis:
The appellant challenged the judgment of the Income Tax Appellate Tribunal, arguing that certain formalities must be followed before issuing a TDS certificate. The CIT (Appeals) observed that the appellant had not paid the TDS to the Government account until the penalty orders, leading to the non-issuance of TDS certificates. The Tribunal upheld the penalty imposed by the Assessing Officer, stating that interest should be levied only up to the date mentioned in the order of CIT (A), directing that the penalty should be restricted accordingly. The Tribunal also differentiated the case from previous judgments, emphasizing that the substantial amount of TDS deducted by the appellant was not a technical default, as the appellant was aware of its liability to deduct tax.

Verdict:
The High Court upheld the Tribunal's decision, stating that the view taken by the Tribunal was just and proper. The Court ruled in favor of the department, concluding that the appeals were disposed of accordingly.