MANI SQUARE LIMITED,KOLKATA vs. ADDITIONAL CIT, RANGE 2 (TDS), KOLKATA, KOLKATA

ITA 1719/KOL/2026Status: DisposedITAT Kolkata11 September 2026AY 2010-20117 pages
AI SummaryAllowed

What were the facts?

The assessee did not deduct TDS on rent paid to a government company and did not collect TCS on scrap sales, believing exemptions applied. The AO levied penalties under Sections 271C and 271CA for these defaults.

What did the Tribunal hold?

The Tribunal held that the assessee's bona fide belief that the payee was exempt from TDS and that scrap sales were outside TCS provisions constituted a reasonable cause under Section 273B. Therefore, the penalties were not to be imposed.

What were the issues?

Whether the assessee had a reasonable cause for non-deduction of TDS and non-collection of TCS, thereby exempting them from penalties under Section 273B.

Which sections of the Income-tax Act were involved?

Section 194I,Section 206C(1),Section 271C,Section 271CA,Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA

Before: SHRI RAJESH KUMARAND SHRI PRADIP KUMAR CHOUBEY

For Appellant: Shri S. K. Tulsiyan and Jyoti Duggar
For Respondent: Shri Priyanka Dhar, Sr. DR
Hearing: 24.08.2026Pronounced: 11.09.2026

PER RAJESH KUMAR, ACCOUNTANT MEMBER:

This appeal is preferred by the assessee against the order of learned Commissioner of Income Tax (Appeals)-21, Kolkata (hereinafter referred to as the “ld. CIT(A)”], dated 05.03.2026 for the Assessment Year (AY) 2010-10. 2. The only issue raised by the assessee is against the confirmation of penalties by the ld. CIT(A) of Rs.27,600/- and Rs.2,508/-, aggregating to Rs.30,108/- as levied by Assessing Officer (In short, ‘the AO’) u/s 271C and 271CA of the Income-tax Act, 1961 (In short, ‘the Act’) for alleged default u/s 194I and 206C(1) of the Act respectively without appreciating the fact there was a reasona

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 194I

All 476 judgments and leading authorities on Section 194I →

Recent GST High Court judgments

Search GST case law →