Exfacie delay in depositing TDS within due date: ITAT Upholds Proceedings against Assessee [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune Bench dismissed appeal filed as there was ex facie delay in depositing TDS within due date.

The assessee, Pandharpur Municipal Council is a Municipal Council established under the State Municipal Council Act, set up under the ‘Constitution of India’, and functioning as a Local Authority and assessed to income tax as such. For the assessment years under consideration, the appellant assessee e-filed its returns of tax deduction at source for various quarters, which were e-processed by the CPCTDS determining the interest liability u/s 201(1A) for delayed payment of tax (TDS) to the credit of exchequer and consequential levy of interest thereon u/s 220(2) of the Act, and further levying fees for delayed filing of TDS-Returns u/s 234E of the Act.

The CIT(A), in the light of judicial pronouncement confirmed the statutory levy of interest u/s 201(1A) & 220(2) of the Act, apropos the Ld. FAA granted partial relief by deleting late fees levied u/s 234E in the light of amendment brought in by Finance Act, 2015.Aggrieved by the order of CIT(A), the assessee is in appeal before the Tribunal.

The only substantive question to be adjudicated is as to ‘whether default or failure to pay the TDS within prescribed time limit is sufficient to hold the appellant as an ‘assessee in default’ within the ambit of section 201(1) of the Act?’

The Bench consisting of S S Viswanethra Ravi, Judicial Member and G D Padmahshali, Accountant Member held that “in the present impugned case, it remained an undisputed fact that, the appellant after deducting the tax from the payment due to large number of contractors or payees etc., was failed to pay such deducted tax to the credit of Central Government within the due date prescribed in the respective provisions of chapter XVII of the Act, consequently the CPC-TDS initiated the proceedings identifying the delays in payment of deducted tax on the basis of information supplied by the appellant while filing the respective TDS returns, more particularly ‘Form No 26Q’ quarterly returns and considering the online representation, e-processed the TDS-returns.”

“In the present case, admittedly there was exfacie delay in depositing the deducted tax within the stipulated due dates” the Tribunal ruled.

To Read the full text of the Order CLICK HERE

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