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TMI Blog2016 (3) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... loss to the Revenue. Therefore, 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. See CIT vs. Cadbury India Limited [2011 (3) TMI 239 - DELHI HIGH COURT ] 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 not automatic. Therefore, in the present case, there was no mala fide intention on the part of the assessee for non-deduction of TDS since it had recovered the TDS from the concerned as soon as the violation of law was brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons were against compulsory acquisition of non agricultural land, the deductor assessee was required to deduct tax at source as per the provisions of section 194LA of the I.T. Act. It was seen that the Land Acquisition Collector, Silvassa had failed to comply with the said provisions of section 194LA of the I.T. Act, thereby committing default under this section. Accordingly order u/s 201(1) and 201(1A) of the Act was passed and an amount of ₹ 52,810/- was raised as demand u/s 201(1) or not deducting tax as per section 194LA on the payment made to (i) M/s Alok Textile Ltd, (ii) M/s Gulf 0il Corporation Ltd (iii) M/s Blue Blends (India) Ltd (iv) Shri Yashwantrao R Kapti (v) Kum. Chandanben S Delkar (vi) Shri Rakeshsinh M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 would not have been unearthed. Even after pointing out the exact contents of this case and after a lapse of such a long period the tax has not been deducted/collected and paid into the central govt account which caused loss to the Govt. Exchequer. According to the assessing officer in view of the above, the assessee failed to discharge its initial burden cast upon it u/s 194LA of the Act and thereby became liable for penalty and the penalty of ₹ 168588/- being an amount equal to the amount of non-deduction of tax at source u/s 194LA of the Act was lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 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 that as per the provisions of Section 194LA of the Act, the assessee was required to deduct tax from the payment made towards the compulsory acquisition of non-agricultural land in the Union Territory of Dadra Nagar Haveli, being unaware of such TDS provisions the assessee had made full payment to the land owners. When the team of Income Tax Officer (TDS), Valsad visited the office of the assessee, then only the office of the assessee came to know about its TDS obligation and thereafter it had taken steps to recover the TDS amount from the lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-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 not automatic. Therefore, in the present case, I am of the considered view that there was no mala fide intention on the part of the assessee for non-deduction of TDS since it had recovered the TDS from the concerned as soon as the violation of law was brought into assessee s notice, as discussed above. Therefore, in the fact and circumstances of the case, I hereby delete the penalty of ₹ 1,68,588/- levied by the Assessing Officer u/s 271C of the Act. ITA No. 2812/Ahd/2014 : AY 2012-13 4. Similar issue arose i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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