MANOJ KUMAR PROPRIETOR M/S MANOJ METALS,FARIDABAD vs. ACIT TDS, FARIDABAD

ITA 1501/DEL/2026Status: DisposedITAT Delhi31 August 2026AY 2024-2515 pages
AI SummaryRemanded

What were the facts?

The assessee faced issues with TDS deduction due to suppliers' PANs being inoperative due to non-linking with Aadhaar. This led to higher TDS rates and late fees being levied. The assessee argued that the delay was beyond their control and due to external factors.

What did the Tribunal hold?

The Tribunal held that while stringent provisions exist to curb tax evasion, the department's system should have flagged inoperative PANs. The assessee is not liable for higher TDS if the deductee has declared the income and paid taxes. The matter was remanded to the AO for fresh determination.

What were the issues?

Whether the assessee is liable for higher TDS rates and late fees when the deductee's PAN was inoperative due to non-linking with Aadhaar, and whether the department bears some responsibility for not flagging such inoperative PANs.

Which sections of the Income-tax Act were involved?

Section 206AA,Section 234E,Section 194Q,Section 119(2)(b),Section 40(a)(ia),Section 201(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA & SMT. RENU JAUHRI

Hearing: 04.08.2026Pronounced: 31.08.2026

PER BENCH: The above captioned three appeals are filed by the assessee directed against the order dated 14.08.2025 of the Id. Commissioner of Income Tax (Appeal),-7, Mumbai, [hereinafter referred to as the 'Ld. CIT(A)], )] arising out of the Order dated 06.02.2025 passed under section 154 r.w.s. 200A/206CB of the Income Tax Act, 1961 (hereinafter referred to as the Act) Assessing Officer, Centralized Processing Cell- TDS (hereinafter referred to as the 'AO, CPC') pertaining to Assessment Year (A.Y.) 2024-25. P a g e | 2 ITA Nos.1499 to 1501/Del/2026 Manoj Kumar (Proprietor

The order continues below.

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