PARSVNATH DEVELOPERS LTD,NEW DELHI vs. JCIT, RANGE-76, NEW DELHI

ITA 1821/DEL/2022Status: DisposedITAT Delhi18 December 2024AY 2012-13Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)12 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the imposition of penalty under Section 271C was not justified. It reasoned that clerical and arithmetical mistakes are common in accounting and reporting, and such errors by an accountant should be considered sufficient justification for short deductions, especially when no malice is evident.

What were the facts?

The assessee faced penalty proceedings under Section 271C for short deduction of TDS over multiple financial years. The penalty was imposed due to inadvertent mistakes by the accountant in filing TDS returns, leading to discrepancies in tax deduction amounts.

What were the issues?

Whether penalty under Section 271C is leviable for short deduction of TDS arising from inadvertent clerical/arithmetical mistakes by an accountant, and whether a consolidated penalty order for multiple assessment years is permissible.

Which sections of the Income-tax Act were involved?

Section 271C,Section 194C,Section 194I,Section 194A,Section 197

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : F : NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI ANUBHAV SHARMA

For Appellant: Shri Paritosh Jain, Advocate
For Respondent: Ms Harpreet Kaur Hansra, Sr.DR
Hearing: 02.12.2024Pronounced: 18.12.2024

PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 08.06.2022 of the Commissioner of Income-tax (Appeals)-30, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No.10509/2017-18 arising out of the appeal before it against the order dated 26.02.2018 passed u/s 271C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the JCIT, Range-76, New Delhi (hereinafter referred to as the Ld. AO).

2.

On hearing both the sides, it comes up that the penalty order has been passed u/s 271C of the Act as a total short deduction of Rs.1,72,36,872/- was noticed in t

The order continues below.

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