24 September 2007
In the A Y 05-06 the assessee did not deduct education cess but the TDS with SC was deducted. However in June 2005 deposited the shortfall with interest. Suppose the total amount of which TDS is deducted is Rs 10 lacs. TDS comes to Rs 20000 plus SC Rs 500 + 410 EC ( its is a case of TDS on contract to company). What will be the amount of disallowance ?. Is the entire amount will be disallowed due to small amount of Rs 410 not deducted and deposited within the Financial year or a proportinate amount should be disallowed ie. about 19617.
24 September 2007
I think that there is no specific case laws in particular situation. Any way if they short deduction of Tds, while they are filing e-TDS returns it will not be accepted. It is error of omission we can justfy that to allow the entire amount.
24 September 2007
THE ENTIRE AMOUNT PAID AS TAX CANNOT BE DISALLOWED BECAUSE TAX INFACT WAS PAID BUT DUE TO AN ERROR OF OMMISSION OR OVERSIGHT , IT IS A CASE OF SHORT DEDUCTION WHICH WAS ANY WAY MADE GOOD BY DEPOSIT BY THE ASSESSEE FOR WHICH NECESSARY INTEREST ON DELAYED PAYMENT IF APPLICABLE AND IF ANY WILL BE CHARGED. HOWEVER WHAT WAS ACTUALLY PAID ONLY COULD HAVE BEEN CLAIMED AS A DEDUCTION IN THE IT RETURN AND THE SAME OUGHT TO BE SHOWN IN TDS RETURNS ,AS SUPPORTED BY DOCUMENTS.THEN IT AMOUNTS TO ADMISSION OF AN ERROR OF OMMISSION OR OVERSIGHT. SINCE THERE IS NO WILFUL OR INTENTIONAL NON DEDUCTION,THE SAME MAY BE EXPLAINED TO THE ASSESSING OFFICER AND EVEN A NOTE MAY BE ATTACHED WHILE SUBMITTING THE IT RETURN BEFORE ASSESSING OFFICER POINTS OUT. HONESTY WILL BE REWARDED. THIS IS REQUIRED IF A REVISED RETURN OF TDS IS NOT FILED. C.A.R.V.RAO
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