2016 (6) TMI 739

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..... sonable man of ordinary prudence acting under normal circumstances, without negligence or inaction or want of bona fides, alone make out a reasonable cause. In this case, Annexure A order of the Joint Commissioner shows that the assessee failed to produce any evidence to substantiate its claims. However, the Commissioner (Appeals) decided the issue by putting the burden on the revenue, which is evident from the extracted portion of the Annexure B order passed by the Commissioner. The order of the Tribunal shows that the Tribunal has given totally different reasons which are mere surmises and assumptions made by it and are not founded on any materials that were made available by the assessee. All this therefore show that the assessee had not .....

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..... . Whether, on the facts and in the circumstances of the case, while considering the cause or causes for the reasonable cause under sec 273B should not the Tribunal have confined to the causes urged/repeated before the assessing officer/Commissioner of Income Tax (Appeals) and is not consideration of new reasons and sustaining the order of CIT(A) on new reasons without jurisdiction, illegal and vitiated? 4. Whether, on the facts and in the circumstances of the case, are not the reasons urged (para 4 of the order of the Tribunal) in support of 'reasonable cause' under Section 273B and considered and relied on by the CIT (A) militating against each other and hence both being non-existing, baseless, untenable, the Tribunal is justi .....

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..... ned legally. Considering all these aspects, I am of the view that the appellant's case deserves a lenient treatment in respect of the bonafide mistake committed by it. The penalty levied u/s 271C is accordingly cancelled. 4. It was this order which was confirmed by the Tribunal. 5. Having heard the Senior Counsel for the revenue and also going through the orders passed by the statutory authorities, we find that it was the admitted case of the assessee that they did not deduct tax at source as required by them under Section 194A. When there is a failure on the part of the assessee to deduct tax at source in violation of Section 194A, the penal provisions of Section 271C are attracted. In such a case, the only way out for the asses .....

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