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TMI Blog2017 (4) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessee in default u/s 201(1) of the Act, particularly when assessee explains the reasons for such mistakes. We further observe that the assessee has furnished all details and requested for one more opportunity to explain its case. Therefore, keeping in view overall facts and circumstances of the case, we deem it appropriate to remit the issue back to the file of the A.O. and direct the A.O. to examine the case with reference to the details furnished by the assessee and re-compute the short deduction of tax, TDS deducted but not remitted into government account and interest as per the provisions of the Act. Needless to say, the assessee is directed to furnish the necessary information without seeking any adjournments. Appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee has filed necessary details. 3. The A.O. observed that on verification of information furnished by the assessee, it was noticed that the assessee is remitting TDS deducted on interest payments into the Central Government account in few cases, however in majority of the cases, tax deducted at source has been refunded to the depositors on submission of form 15G/15H. The A.O. further observed that the assessee belatedly remitted TDS recovered from interest payments and accordingly worked out short deduction of TDS, TDS deducted but not remitted into Central government account, interest on short deduction of TDS and interest on delay in remittance of TDS into government account and issued a show cause notice dated 25.2.2013 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t deduction of TDS as well as delay in remittance of TDS, the assessee submitted that because of shortage of staff due to transfers and promotions/retirement, the branch is not able to compile the TDS amount deducted from interest payments and hence there is a slight delay in remittance of TDS, which will be rectified in the coming days. 5. The A.O. after considering the explanations of the assessee, held that the assessee is in the practice of deducting tax at source in all the cases periodically and later on obtaining form 15G/15H from the customers not remitting tax deducted into the central government account. However, the assessee failed to furnish relevant form 15G/15H at the time of survey and only furnished such forms after initi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce declaration in form 15G or 15H is filed, any deduction of tax by the assessee would be illegal and mere non-filing of such forms before the Commissioner cannot be a reason to hold that there is failure to deduct tax at source. The A.R. further submitted that the TDS aspect of the bank has been taken care by the core banking system, which is managed by the head office and TDS will be automatically deducted as and when interest is credited/paid to the depositor s account and hence, the question of short deduction of tax at source does not arise. The A.R. referring to the paper book filed, submitted that the assessee has compiled all the details and explained the reasons for short deduction, tax deducted but not remitted in to the governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Therefore, held that the assessee as an assessee in default u/s 201(1) 201(1A) of the Act. It is the contention of the assessee that its TDS aspect has been taken care by the core banking system, which is monitored by the computer department at Head office, which will automatically deduct TDS as per the provisions of the Act, hence, question of short deduction of tax at source does not arise. The assessee further contended that few customers submitted declaration in form 15H/15G belatedly, because of which the system has taken 20% rate, however, the same has been reversed after obtaining the relevant forms from the customers, therefore, for belated remittance of declaration forms, short deduction of tax cannot be computed. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all details and requested for one more opportunity to explain its case. Therefore, keeping in view overall facts and circumstances of the case, we deem it appropriate to remit the issue back to the file of the A.O. and direct the A.O. to examine the case with reference to the details furnished by the assessee and re-compute the short deduction of tax, TDS deducted but not remitted into government account and interest as per the provisions of the Act. Needless to say, the assessee is directed to furnish the necessary information without seeking any adjournments. 11. In the result, the appeal filed by the assessee is allowed for statistical purposes. 12. The assessee has filed stay application, seeking stay of outstanding demand for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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