2017 (4) TMI 1306

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..... ndani, AR ORDER PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : This appeal has been preferred by the Department is directed against the order of the Commissioner of Income Tax(Appeals)-I, Rajkot, dated 21/07/2015 for the Assessment Year (AY) 2014-15. 2. Department has been taken following Grounds of appeals: i. The learned CIT(A) has erred in law as well as well as facts of the case in holding t .....

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..... to show cause as to why penalty u/s. 271C of the IT Act should not be imposed for the default made by it in respect of failure to deduct proper tax or delay in paying the amount of TDS to Government account. 5. Thereafter, reply was filed by the assessee. The assessee's submission has been considered. The assessee has pointed out that due to dispute regarding right of way there was a delay of 252 .....

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..... siness. There is no satisfactory explanation on part of the company which renders it liable for penalty provisions of section 271C of the I.T. Act. 6. Considering all the relevant facts it is clear from the records that the assessee has defaulted in complying with the TDS provisions of the IT Act and has thus rendered itself liable for levy of penalty u/s. 271C of the I.T. Act. 7. Total amount o .....

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..... e the learned CIT(A), who allowed the appeal of the assessee. 9. We have considered the impugned order and heard the rival submissions, in our opinion, learned CIT(A) has mentioned in his order that the appellant is fairly covered within the provisions of the Section 273B as it had a reasonable cause for late deposit of TDS to the credit of the Govt. and further that the actual payment of tax wit .....

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..... luntarily and there existed a bona fide belief for not deducting the tax at source on account of emoluments paid to the expatriate employees outside India, no penalty Under Section 271C is exigible by the alleged default. Further, the assessee had cooperated in regard to the TDS matters with the Department, we feel that there existed a reasonable cause which is covered by the provisions of Section .....

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