The appellant assessee was a Public Sector Bank having deposits in the form of FDRs/TDR/RD/Saving Account of the deductee company. There was an amendment in the Finance Bill 2015 w.e.f. 1.4.2015 wherein, it was made mandatory to deduct TDS on payment of interest to an organization whose income is exempted u/s 10(23C)(iiiab) of the Act.

A survey u/s 133A of the Act was carried at the office premises / branch of the bank and on examination of records, it was noticed that the duductor bank had credited interest to an entity exempt u/s u/s 10(23C)(iiiab) of the Act.

The Assessee deductor had failed to deduct TDS u/s 194A of the Act and had failed to deposit the TDS amount in the Central Government account within the time prescribed u/s 200 of the Act read with Rule 30 of the I.T. Rules, 1962.