9911796707
TMI Blog2016 (3) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... 09-10 2. In this appeal, the sole ground raised by the assessee reads as under:- On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the penalty imposed by the assessing officer u/s 271C of Rs. 1,68,588/- 3. In this case, the Assessing Officer levied penalty of Rs. 1,68,588/- u/s 271C of the Act, by observing as under: "Fact of the case is that a verification was carried out in the office of the deductor assessee on 23.01.2012. It was observed from the details submitted that the deductor assessee has made payments to certain land owners during the year under consideration, in the form of consideration against compulsory acquisition of non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,588 54,923 Nil 1,68,588 In response to the show cause notice, the assessee has neither availed the opportunity of personal hearing nor filed any written submission. As the deductor assessee has not compiled the show cause notice, the assessee is considered as assessee in default for the following reasons: i) The deductor assessee is an assessee in default as it has contravened the provision of section 194LA of the I.T. Act, 1961 as already proved in the order u/s 201(1) and 201(1A) of the Act passed by the AO. ii) No compliance has been made to the order passed u/s 201(1) and 201(1A) of the IT Act which proves that the intention of the assessee is not genuine. iii) Had the verification not taken place, the matter woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was no intention to violate the provisions of Income Tax Act which in this case - section 194LA of the Act. As soon as the violation of law was brought into assessee's notice, the assessee collected the amount of TDS from some deductees. In case of others the requisite details of TDS to be deducted was collected but by that time those deductees filed their Income Tax return and made the payment of tax due. The proof of such payments made was also collected. During the appellate proceedings, all those details collected by the deductor were filed and the assessee pleaded before the CIT(A) that the whole tax due has been deposited into the Govt account and therefore, there is no revenue loss. In this background, it was submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1A) of the Act by ITO(TDS), Valsad. Thus, there is no loss to the Revenue. Therefore, I am of the view that there is no mala fide intention on assessee's part, in 1st lapse on its part, as it seems that there is no loss to the Revenue. In this regard, the Authorized Representative for the assessee relied upon the decision of Hon'ble Delhi High Court in the case of CIT vs. Cadbury India Limited in ITA Nos. 1397/2008, 1398/2008 and 429/2009, dated 28.03.2011; wherein the Hon'ble High Court held that "penalty u/s 271C for non-deduction of TDS not leviable if there was no "mala fide intention" or "deliberate defiance" of law". It was also observed by the Hon'ble Delhi High Court in the aforesaid judgment that the levy of penalty u/s 271C is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
