EVERSHINE FILMS P.LTD,MUMBAI vs. ADDL CIT (TDS) RG 1, MUMBAI

None appeared on behalf of the assessee even though notices of hearing were sent by registered post on more than one occasion. Hence, we proceed to dispose of the appeal ex-parte, without presence of the assessee.

We heard learned Departmental Representative and perused the record. The assessee is engaged in the business of production of feature films. A survey operation u/s. 133A of the Act was conducted at the premises of the assessee on 3.8.2006. During the course of survey, it was noticed that the assessee has not deducted tax at source from certain payments in both the years under consideration. Further the assessee has ALSO not remitted the tax, which it had deducted from certain payments. Hence, the Assessing Officer raised demand u/s. 201(1) of the Act and also levied interest u/s. 201(1) of the Act. The Assessing Officer has observed that the assessee did not prefer appeal against the demand raised u/s. 201(1)/201(1A) of the Act.

Thereafter, the Assessing Officer also levied penalty u/s. 271C of the Act in both the years under consideration. Since the assessee did not file at all “Annual return of TDS” prescribed under the Act, the Assessing Officer levied penalty u/s. 272A(2)(c) of the Act till the date of his respective orders passed in both the years.

The assessee preferred the appeals before the learned CIT(A) challenging the penalties levied under both the Sections in both the years. The learned CIT(A), however, dismissed all the appeals filed by the assessee and hence the assessee has filed these appeals before us.

We shall first take up the appeals filed for A.Y. 2005-06 & 2006-07 challenging penalties levied u/s. 271C of the Act. We noticed that the assessee has not offered any explanation for non deduction/non-remittance of TDS amount and hence the learned CIT(A) has confirmed the penalty. Before us also no material was placed to controvert the findings given by the learned CIT(A). Under these set of facts, we have no other option but to confirm the order passed by the learned CIT(A) in both the years confirming the penalty levied u/s. 271C of the Act.

With regard to appeals filed by the assessee challenging the penalty levied u/s. 272A(2)(c) for A.Y. 2005-06 & 2006-07, we noticed from the record

In the result, the appeals in & 1387/Mum/2013 are dismissed and remaining two appeals are allowed.