No Penalty if Assessee Wrongly mentioned PAN in place of TAN in TDS Challan: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) Lucknow on May 2^nd came into the rescue of an assessee who were penalized for mentioning PAN in place of TAN in TDS challan.

The assessee, M/s Umatech, deposited TDS on a non-TDS challan and PAN number was mentioned in place of TAN number. Mainly because of this technical error, the Assessing Officer had to add labour payments of Rs.2,08,42,101/- to the income of the assessee. Aggrieved, the assessee approached the Commissioner of Income Tax Appeals (CIT(A)) who granted relief to the assessee by setting aside the penalty. This made the Revenue Department to appeal to the ITAT for revision

The Tribunal bench comprising of Judicial Member Partha Sarathi Chaudhry and Accountant Member T.S. Kapoor while dismissing the appeal of the Revenue held, “All these are on record and only there is a technical error that in the challan PAN number of the assessee is mentioned instead of TAN in the relevant column on account of bona- fide mistake, for which assessee should not be penalized or punished when there is no loss to the Revenue. We are of the considered view that we do not find any infirmity with the findings of the ld. CIT(A) and relief was given to the assessee is sustained.”