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TMI Blog2018 (3) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... ty proceedings claimed before A.O. that income of the Noida Authority exempt under section 10(20) of the I.T. Act, which fact was also has not proved by the assessee because it was incorrect. Therefore, the assessee had been negligent in not deducting TDS on lease rent paid to Noida Authority without any justification. Since assessee failed to prove its bonafide through any relevant and cogent evidence, therefore, assessee cannot take benefit of Section 273B of the I.T. Act as the assessee has failed to prove any reasonable cause for failure to comply with provisions of law. No interference is called for in the matter. Assessee submission that since the assessee moved an application under section 154 before Ld. CIT(A) for rectification o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details with explanatory note that TDS deduction is not applicable in the case of Noida Authority. The A.O. however, in the order under section 201 of the Act observed that Noida Authority is not exempt as it is not Local Authority. The status of Noida Authority as Local Authority has not been accepted by the Hon ble Allahabad High Court in the Writ Petition filed by Noida Authority. The A.O. did not accept the contention of assessee because assessee failed to deduct tax at source and has failed to prove any reasonable cause for such failure. The only reason put-forth by the assessee was that Noida Authority failed to clarify its position whether it is exempt under provisions of Section 10(20) of the I.T. Act and also could not produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts to get clarification from Noida Authority whether its income is exempt under section 10(20) of the I.T. Act. But, there was no reply given by them. He has submitted that due to above reasonable cause, the assessee did not deduct TDS, therefore, penalty may not be imposed. 5. The Ld. D.R. however, objected to the submissions of the Learned Counsel for the Assessee because assessee without any justification did not deduct tax at source despite Writ Petition of Noida Authority was dismissed by Hon ble Allahabad High Court on 28.02.2011 by holding that it is not Local Authority. Therefore, it is a clear case of negligence on the part of the assessee in not deducting TDS. Therefore, penalty may be confirmed. 6. After considering the riv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mply with provisions of law. No interference is called for in the matter. 7. Learned Counsel for the Assessee lastly submitted that since the assessee moved an application under section 154 before Ld. CIT(A) for rectification of the impugned order, therefore, appeals of the assessee may be kept in abeyance. Learned Counsel for the Assessee submitted that assessee challenged for the first time before Ld. CIT(A) that the penalty orders are time barred. This issue is not arising out of the orders of the authorities below and even the assessee has not moved any proper application for admission of additional ground before the Tribunal that assessment order is time barred, therefore, such plea of the assessee cannot be entertained at this stag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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