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TMI Blog2015 (10) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 201(1) and 201(1A) has already been confirmed by the Tribunal. Once, already a penalty under section 271C has been levied for non–payment of TDS amount to the Government account, then the assessee had a bonafide reason that the return of income under section 206, giving particulars of TDS deposited and cheque number was not required to be filed, because the requisite details and particulars were not there with the assessee. Under these circumstances, Thus we agree with the findings and the conclusion of the Commissioner (Appeals) that there was a reasonable cause within the meaning of 273B for not imposing penalty. Penalty deleted by the learned Commissioner (Appeals) is upheld. - Decided against revenue. Penalty under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai, for the assessment year 2000 01, in the matter of penalty proceedings under section 272A(2)(c) and 272A(2)(g). Since both these appeals pertain to the same assessee involving common issues arising out of identical set of facts and circumstances, therefore, as a matter of convenience, these appeals were heard together and are being disposed off by way of this consolidated order. However, in order to understand the implication, it would be necessary to take note of the facts of one appeal. We are, accordingly, narrating the facts, as they appear in the appeal in ITA no. 1157/Mum./2011, vide which, following grounds have been raised: (i) The Ld. ClT (A) has erred on facts and in law in deleing penalty imposed u/s. 272A(2)(c), wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , who held that the assessee company was in default under section 201(1) in respect of the sum of ₹ 60,91,655. In addition to that interest under section 201(1A), was also charged to the tune of ₹ 40,20,493. Not only that penalty under section 271C was also levied by the ACIT (TDS), imposing penalty of ₹ 60,91,665, vide order dated 27th July 2008. During the course of the impugned penalty proceedings, the assessee submitted that there was a reasonable cause as the assessee was not having funds at all to deposit the same in the Government account as the company had incurred heavy losses. In support reliance was placed on the decision of Allahabad High Court in CIT v/s Ram Memorial Education Promotion Society, [2006] 287 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Hon'ble Allahabad High Court was placed in Shri Ram Immemorial Education Promotion Society. Besides this, various other arguments were raised with regard to the distinction made by the ACIT on the decision of the Hon'ble Allahabad High Court. 4. The learned Commissioner (Appeals) duly appreciated the assessee s contention and held that the ACIT has not ascribed any reason as to how the explanation of the assessee is not tenable and also he has not made out a case, whether the assessee had acted deliberately in defiance of law or was guilty of any contumacious conduct or dishonesty. He appreciated the assessee s bonafide reason that for filing of the return of income under section 206, the requisite particulars had to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Government account, the assessee has already been subjected to heavy interest under section 201(1A) for sums amounting to ₹ 40,20,493 and further penalty of ₹ 60,91,665 under section 271C. The order under section 201(1) and 201(1A) has already been confirmed by the Tribunal. Once, already a penalty under section 271C has been levied for non payment of TDS amount to the Government account, then the assessee had a bonafide reason that the return of income under section 206, giving particulars of TDS deposited and cheque number was not required to be filed, because the requisite details and particulars were not there with the assessee. Under these circumstances, we agree with the findings and the conclusion of the learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder bonafide belief that once the tax has not been deposited to the Government account then no certificate under section 203 could have been issued and such a bonafide belief falls within the ambit of section 273B, which envisages that no penalty is leviable if the assessee has bonafide reasons. 10. Since the facts and circumstances are exactly similar, as mentioned in Revenue s appeal in ITA no.1157/Mum./2011, therefore, the findings given therein will apply mutatis mutandis here also. Accordingly, we affirm the findings and the conclusion of the learned Commissioner (Appeals) deleting the penalty. Consequently, the grounds raised by the Revenue in this appeal are also dismissed. 12. In the result, Revenue s appeals are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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