M/S. SAHARA CREDIT COOPERATIVE SOCIETY,LUCKNOW vs. JOINT COMMISSIONER OF INCOME TAX (TDS), LUCKNOW

ITA 16/LKW/2018Status: DisposedITAT Lucknow07 January 2020AY 2015-166 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that penalty under Section 271C is not leviable when TDS has been deducted and paid, even if with delay. The delay in deposit was attributed to reasonable cause, and only interest under Section 201(1A) could be charged.

What were the facts?

The assessee society delayed the deposit of TDS on commission payments due to severe financial distress and the imprisonment of its top management. The Assessing Officer levied a penalty under Section 271C for this delay.

What were the issues?

Whether penalty under Section 271C is leviable for delayed deposit of TDS when there is a reasonable cause for the delay and the tax has been paid. Whether the assessee can claim reasonable cause under Section 273B for the delay.

Which sections of the Income-tax Act were involved?

Section 271C,Section 273B,Section 201(1A)

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Cases cited in this judgment(5)Show list

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Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW

Before: SHRI. A. D. JAIN & SHRI T. S. KAPOOR

For Appellant: Shri J.J. Mehrotra, C.A. and Shri
For Respondent: Shri Ajay Kumar, D.R

PER A. D. JAIN, V.P.: This is an appeal filed by the assessee against the order of the ld. CIT(A), Lucknow, dated 12/10/2017 for assessment year 2015-16, taking the following grounds:

1.

That the Learned CIT(A) is not justified in confirming the penalty under section 271C of the Income Tax Act, 1961 to the extent of tax deducted at source amounting to Rs.13,220/-, though penalty late with Government Treasury.

2.

That the Learned CIT(A) has failed to appreciate that initiation of proceedings under section 271C were based on frivolous complaint in which the complainant had stated that TDS of Rs.50,000/- has been deducted on commission payment of Rs.5,00,000/- which was demonstrated to be factual

The order continues below.

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