2004 (12) TMI 61

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..... t depositing/deducting the tax deducted at source from the particular class of consumers. In our view, the explanation was bona fide and deserves to be accepted. In no case, was it a case of deliberate concealment or was done with a view to evade payment of tax and putting the Revenue to loss - Tribunal was justified in deleting the penalty levied under section 271C
Judge(s) : A. M. SAPRE., ASH .....

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..... vied under section 271C of the Income-tax Act? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that Senior Accounts Officer, MPEB, Indore, cannot be treated as principal officer for want of notice as per clause (b) of section 2(35) of the Income-tax Act even though senior accounts officer falls under clause (a) of section 2(35) of the In .....

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..... on 201 ibid. The respondent is an assessee- M.P. Electricity Board. In substance, the charge against the Board, i.e., the assessee was that the Board deducted less amount of tax deducted at source from their particular class of consumer (High Tension Transmission Lines). According to the Department, the Board should have deducted at source 23 per cent, whereas they recovered at the rate of 10 per .....

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..... unal rightly accepted the explanation offered by the Board/assessee. It was not a case of deliberate attempt on the part of the assessee to avoid payment by way of deduction for being deposited. The assessee is not a private businessman but it is a Government statutory organisation. Moreover there was some confusion as regards the extent of percentage to be deducted from the different class of cus .....

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..... ona fide belief that the offender is not liable to act in the manner prescribed by statute." In our opinion, the aforesaid principle of law squarely apply to the facts of this case, if we examine the explanation offered by the Board/assessee for not depositing/deducting the tax deducted at source from the particular class of consumers. In our view, the explanation was bona fide and deserves to be .....

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