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TMI Blog2017 (6) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... t the said payment was made for delay in lifting the goods and the same was of penal in nature which can be safely accepted as a reasonable case for non-deduction of tax at source. As prior to the passing of the order u/s. 200(1) of the Act, the assessee has paid the differential amount of tax in the case of Padhiyar Hi-tech Engineering. This itself shows that there was no mala fide on the part of the assessee to willfully evade the provisions of the law. Section 273B of the Act provides that no penalty shall be imposable on the assessee for any failure referred to in the said provisions if he proves that there was a reasonable cause for the said failure. - Decided in favour of assessee. - ITA. No. 405/RJT/2015 - - - Dated:- 6-6-2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut concluded the penalty proceedings by levying penalty of ₹ 17.40 lacs. 7. Assessee carried the matter before the ld. CIT(A) and reiterated its contention. 8. The ld. CIT(A) was convinced that the facts of the case do not warrant levy of penalty automatically. The ld. CIT(A) further observed that the A.O. has levied the penalty mechanically without considering the merits of the case. In the opinion of the ld. CIT(A), the assessee while deducting tax at source u/s. 194C of the Act was under a bona fide belief that the same is applicable on the impugned payments. The ld. CIT(A) concluded by holding that the assessee has successfully demonstrated a reasonable cause and, therefore, the penalty u/s. 271C deserves to be cancelled. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S was made under that section. Sec. 194J was applicable to the impugned payment 5 40,395/- Amount paid for repair maintenance to Gayatri engi. foundry. Sec. 194C was applicable and TDS was made under that section. Sec. 194J was applicable to the impugned payment. 6 14,626 Amount paid to D H Secheron Electrodes for welding job work. Sec. 194C was applicable and TDS was made under that section. Sec. 194J was applicable to the impugned payment. 7 2,96,8207- Demurrage charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted as a reasonable case for non-deduction of tax at source. 13. We further find that prior to the passing of the order u/s. 200(1) of the Act, the assessee has paid the differential amount of tax in the case of Padhiyar Hi-tech Engineering. This itself shows that there was no mala fide on the part of the assessee to willfully evade the provisions of the law. Section 273B of the Act provides that no penalty shall be imposable on the assessee for any failure referred to in the said provisions if he proves that there was a reasonable cause for the said failure. On the facts of the case, we find that there was a reasonable cause for the failure. We, therefore, find no error or infirmity in the findings of the ld. CIT(A). 14. Appeal fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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