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February 2023

Authorities directed to correct the demand raised due to deposit of TDS by the assessee vide a wrong challan.

By Jagdish Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 4 mins
55 WorldQuant Research (India) Pvt Ltd vs.
CIT, National Faceless Appeal Centre
TS-963-ITAT-2022 (Mumbai)
A.Y.: 2021-22
Date of Order: 13th December, 2022

Authorities directed to correct the demand raised due to deposit of TDS by the assessee vide a wrong challan.

FACTS

Aggrieved by the demand, the assessee raised on account of short payment of TDS under section 195 of the Act due to error in depositing TDS under wrong challan.

During the year under consideration, the assessee paid a dividend to a non-resident shareholder and deducted tax under section 195 of the Act. However, while depositing the amount of TDS, the assessee deposited the taxes vide challan no. 280 which is applicable for payment of advance tax, self-assessment tax, tax on regular assessment, tax on distributed income to unit holders, etc. The assessee ought to have correctly deposited the taxes vide challan no. 281 which is applicable for taxes deducted at source. The relevant TDS return was filed by the assessee on 31st March, 2021.

Upon noticing the error of having deposited the amount of TDS vide an incorrect challan the assessee filed a letter with DCIT-15(3)(1) as well as with DCIT-TDS (OSD) requesting to consider the deposit of taxes on dividend under challan no. 281 though erroneously deposited vide challan no. 280. However, vide Intimation dated 5th April, 2021 issued u
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