Santhanagopalan Chitra vs. The Income Tax Officer
Parties Involved
Facts Summary
The assessee, Santhanagopalan Chitra, is a doctor who conducts business under the names Lalitha Nursing Home & Shyamala Nursing Home. A survey conducted on 31.12.2021 found that an amount of ₹1,12,50,000/- was paid towards salary to Dr. V. Akila and Dr. N. Gayathri. The Income Tax Officer (ITO) deducted Tax Deducted at Source (TDS) under section 194J of the Income Tax Act, 1961, at a rate of 10% under professional charges instead of section 192 of the Act at the average rate of tax under salary. The assessee admitted this as a clerical mistake and paid the differential amount of ₹23,75,000/-. The ITO imposed interest under section 201(1A) of the Act for late deduction/short deduction to an extent of ₹1,49,050/-. The assessee appealed against the order of the ITO, contending that the tax deduction was made in good faith and on the advice of tax consultants.…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the assessee can be construed to have acted deliberately in defiance of law by deducting tax at lower rates under section 194J of the Act instead of 192 of the Act.
- 2. Whether the interest levied under section 201(1A) of the Act is justified.
Judgment Outcome
Decided in favour of Partly Assessee / Partly Revenue.
Precedents Relied Upon
2 precedents cited in this judgement.
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