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TMI Blog2016 (10) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... e case the Learned CIT(A) is justified in deleting the penalty without appreciating that the assessee admittedly committed the default of not collecting TCS in terms of Sec. 206C of the Act? 3. Whether on the facts and circumstances of the case the Learned CIT(A) is justified in holding that the default is technical default without appreciating that the assessee failed to prove any reasonable cause for the default except stating and without providing that it is a technical default? 2. In this case the AO noted that the assessee was required to collect tax at source during the F.Y. 2010-11 but the same was done in the month of July, 2011 which was beyond the prescribed dates and he therefore required the assessee to show cause as to why p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 18-07-2011 it become clear that there was a lack of clarity in the appellant's mind with regard to applicable TCS provision and it was only after the Income Tax Department workshop conducted on 07-07-2011 that the appellant became clear about the provisions of TCS and immediately issued the said office order with regard to recovery of 2% TCS on Royalty u/s 206C of the I.T. Act. In such facts no malafide intention cannot be attributed to the appellant that could result in a penalty u/s 271CA of I.T. Act. Thus there did exist a reasonable cause which resulted in delay for collecting TCS and penalty cannot be imposed u/s 271CA in the such circumstances. 5.3 Even otherwise there is merit in the submissions of the appellant that wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss to the Revenue as the TCS was paid along with interest thereon. In view of the above facts, the order passed u/s 271CA imposing penalty of Rs. 11,44,348/- is hereby cancelled. This ground is therefore allowed." 6. Against the above order, the assessee is in appeal before the ITAT. 7. I have heard the learned D.R. None appeared on behalf of the assessee. However, in my considered opinion the issue can be adjudicated by hearing the learned D.R. and perusing the records. 8. Upon careful consideration I find that the reasonable cause for non timely compliance has been attributed to the ignorance of applicable law. To demonstrate the ignorance, the assessee has submitted documentary evidence before the learned CIT(Appeals) who has found ..... X X X X Extracts X X X X X X X X Extracts X X X X
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