CIT v. Bank of Nova Scotia

380 ITR 550Supreme Court of India2016#2092 most cited

What is CIT v. Bank of Nova Scotia authority for?

Penalty under Section 271C for failure to deduct tax is not leviable if the assessee acted under a bona fide belief and without contumacious conduct.

55

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2025.

Also referred to as

CIT v. Bank of Nova Scotia · penalty under Section 271C · failure to deduct tax · bona fide belief · no contumacious conduct · Section 273B · TDS default penalty · non-levy of penalty · Section 201(1A) interest

Sections most often in play

Section 194CSection 201(1A)Section 271CSection 273BSection 10(20)Section 10(46)Section 11Section 12
Read the full judgment

Issues it is cited on

compensatory interestsection 206asection 206aasection 10(46)section 10(20)section 271csection 197asection 194csection 201(1a)interest under section 201(1a)section 273bsection 197

Judgments citing CIT v. Bank of Nova Scotia

DCIT (TDS), Dehradun vs. The Joint Secretary, Dehradun

Appeals are disposed off

ITA 799/DEL/2013[2010-11 (F.Y.- 2009-10)]Status: DisposedITAT Delhi15 Oct 2018

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Ashwani TanejaFor Respondent: Shri Amit Jain, Sr. DR
Section 131Section 133ASection 194CSection 195Section 201Section 201(1)Section 271CSection 9(1)(vii)

…1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 798 & 799/Del/2013 (Assessment Year: 2009-10 and 2010-11) DCIT TDS), Vs. The Joint Secretary 13A, Subhash Road, , Organizing Committee Dehradun for Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant) (Respondent) ITA No. 626 & 627/Del/2013 (Assessment Year: 2009-10 and 2010-11) The Joint Secretary Vs. ACIT, Organizing Committee for TDS, Dehradun Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant…

DCIT (TDS), Dehradun vs. The Joint Secretary, Dehradun

Appeals are disposed off

ITA 798/DEL/2013[2009-10]Status: DisposedITAT Delhi15 Oct 2018AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Ashwani TanejaFor Respondent: Shri Amit Jain, Sr. DR
Section 131Section 133ASection 194CSection 195Section 201Section 201(1)Section 271CSection 9(1)(vii)

…1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 798 & 799/Del/2013 (Assessment Year: 2009-10 and 2010-11) DCIT TDS), Vs. The Joint Secretary 13A, Subhash Road, , Organizing Committee Dehradun for Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant) (Respondent) ITA No. 626 & 627/Del/2013 (Assessment Year: 2009-10 and 2010-11) The Joint Secretary Vs. ACIT, Organizing Committee for TDS, Dehradun Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant…

Shri the Joint Secretary, Dehradun vs. ACIT, Dehradun

Appeals are disposed off

ITA 627/DEL/2013[2010-11 (F.Y.- 2009-10)]Status: DisposedITAT Delhi15 Oct 2018

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Ashwani TanejaFor Respondent: Shri Amit Jain, Sr. DR
Section 131Section 133ASection 194CSection 195Section 201Section 201(1)Section 271CSection 9(1)(vii)

…1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 798 & 799/Del/2013 (Assessment Year: 2009-10 and 2010-11) DCIT TDS), Vs. The Joint Secretary 13A, Subhash Road, , Organizing Committee Dehradun for Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant) (Respondent) ITA No. 626 & 627/Del/2013 (Assessment Year: 2009-10 and 2010-11) The Joint Secretary Vs. ACIT, Organizing Committee for TDS, Dehradun Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant…

Shri the Joint Secretary, Dehradun vs. ACIT, Dehradun

Appeals are disposed off

ITA 626/DEL/2013[2009-10 (F.Y. 2008-09)]Status: DisposedITAT Delhi15 Oct 2018

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Ashwani TanejaFor Respondent: Shri Amit Jain, Sr. DR
Section 131Section 133ASection 194CSection 195Section 201Section 201(1)Section 271CSection 9(1)(vii)

…1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 798 & 799/Del/2013 (Assessment Year: 2009-10 and 2010-11) DCIT TDS), Vs. The Joint Secretary 13A, Subhash Road, , Organizing Committee Dehradun for Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant) (Respondent) ITA No. 626 & 627/Del/2013 (Assessment Year: 2009-10 and 2010-11) The Joint Secretary Vs. ACIT, Organizing Committee for TDS, Dehradun Winter Games, 2009, IHM Campur, Garhi Cantt, Dehradun PAN: AAAA01473G (Appellant…

Mr. Lalit Modi, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee is allowed

ITA 5424/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Sept 2018AY 2012-13

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shuklaasstt. Year 2012-13

For Appellant: Shri R.S. Singhvi,CAFor Respondent: Shri Amit Jain, Sr. DR
Section 143(3)Section 194ASection 201Section 201(1)Section 271CSection 44A

…Electricity Board (HP High Court) (31/05/2017); b. ACIT vs. M/s. Good Health Plan Ltd. (ITAT Hyderabad); c. M/s. Asha Builders Ltd. V. JCIT (ITAT Amritsar); d. ITA v. DLF Southern Homes Pvt. Ltd. (Delhi ITAT) (15/12/17); e. CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC). 6. On the other hand, Ld. DR strongly relied upon the order of the Ld. CIT (A). 7. After considering the relevant findings given in the impugned order and the material placed on record, we find that penalty has been levied on the ground that assessee has not deducted tax at source for the interest payment made to the various parties. Asse…

Siby Mining and Infrastructure Private Limited, Hyderabad vs. Jt. Commissioner of Income Tax, TDS Range-2, Hyderabad

In the result, appeals filed by the assessee are allowed

ITA 34/HYD/2018[2015-16]Status: DisposedITAT Hyderabad11 May 2018AY 2015-16

Bench: Shri D. Manmohan & Shri Rifaur Rahman

For Appellant: Shri C. SureshFor Respondent: Smt. N. Swapna, DR
Section 154Section 194ASection 201(1)Section 271CSection 273B

…essee has a reasonable cause for failure to deduct tax at source. (i) Sukhdev Singh vs. JCIT, ITAT Chandigarh Bench in ITA No. 116/CHD/2014, dt 29.9.2014; (ii) Muthoot Bankers vs. JCIT (2011) 12 ITR (TRIB) 40 (Cochin); (iii) CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC) and (iv) Hon’ble Delhi High Court in the case of Woodward Governor (India) Ltd vs. CIT. 15. Ld. CIT(A) observed that u/s 194A exemption from TDS is limited only to interest payments to Banks and not to NBFCs. There cannot be any scope for confusion in this regard as Banks are different from NBFCs. He further observed that though the assesse…

Siby Mining and Infrastructure Private Limited, Hyderabad vs. T. Commissioner of Income Tax, TDS Range-2, Hyderabad

In the result, appeals filed by the assessee are allowed

ITA 33/HYD/2018[2014-15]Status: DisposedITAT Hyderabad11 May 2018AY 2014-15

Bench: Shri D. Manmohan & Shri Rifaur Rahman

For Appellant: Shri C. SureshFor Respondent: Smt. N. Swapna, DR
Section 154Section 194ASection 201(1)Section 271CSection 273B

…essee has a reasonable cause for failure to deduct tax at source. (i) Sukhdev Singh vs. JCIT, ITAT Chandigarh Bench in ITA No. 116/CHD/2014, dt 29.9.2014; (ii) Muthoot Bankers vs. JCIT (2011) 12 ITR (TRIB) 40 (Cochin); (iii) CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC) and (iv) Hon’ble Delhi High Court in the case of Woodward Governor (India) Ltd vs. CIT. 15. Ld. CIT(A) observed that u/s 194A exemption from TDS is limited only to interest payments to Banks and not to NBFCs. There cannot be any scope for confusion in this regard as Banks are different from NBFCs. He further observed that though the assesse…

Siby Mining and Infrastructure Private Limited, Hyderabad vs. Jt. Commissioner of Income Tax, TDS Range-2, Hyderabad

In the result, appeals filed by the assessee are allowed

ITA 32/HYD/2018[2013-14]Status: DisposedITAT Hyderabad11 May 2018AY 2013-14

Bench: Shri D. Manmohan & Shri Rifaur Rahman

For Appellant: Shri C. SureshFor Respondent: Smt. N. Swapna, DR
Section 154Section 194ASection 201(1)Section 271CSection 273B

…essee has a reasonable cause for failure to deduct tax at source. (i) Sukhdev Singh vs. JCIT, ITAT Chandigarh Bench in ITA No. 116/CHD/2014, dt 29.9.2014; (ii) Muthoot Bankers vs. JCIT (2011) 12 ITR (TRIB) 40 (Cochin); (iii) CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC) and (iv) Hon’ble Delhi High Court in the case of Woodward Governor (India) Ltd vs. CIT. 15. Ld. CIT(A) observed that u/s 194A exemption from TDS is limited only to interest payments to Banks and not to NBFCs. There cannot be any scope for confusion in this regard as Banks are different from NBFCs. He further observed that though the assesse…

Siby Mining and Infrastructure Private Limited, Hyderabad vs. Jt. Commissioner of Income Tax, TDS Range-2, Hyderabad

In the result, appeals filed by the assessee are allowed

ITA 31/HYD/2018[2012-13]Status: DisposedITAT Hyderabad11 May 2018AY 2012-13

Bench: Shri D. Manmohan & Shri Rifaur Rahman

For Appellant: Shri C. SureshFor Respondent: Smt. N. Swapna, DR
Section 154Section 194ASection 201(1)Section 271CSection 273B

…essee has a reasonable cause for failure to deduct tax at source. (i) Sukhdev Singh vs. JCIT, ITAT Chandigarh Bench in ITA No. 116/CHD/2014, dt 29.9.2014; (ii) Muthoot Bankers vs. JCIT (2011) 12 ITR (TRIB) 40 (Cochin); (iii) CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC) and (iv) Hon’ble Delhi High Court in the case of Woodward Governor (India) Ltd vs. CIT. 15. Ld. CIT(A) observed that u/s 194A exemption from TDS is limited only to interest payments to Banks and not to NBFCs. There cannot be any scope for confusion in this regard as Banks are different from NBFCs. He further observed that though the assesse…

Siby Mining and Infrastructure Private Limited, Hyderabad vs. Jt. Commissioner of Income Tax, TDS Range-2, Hyderabad

In the result, appeals filed by the assessee are allowed

ITA 30/HYD/2018[2011-12]Status: DisposedITAT Hyderabad11 May 2018AY 2011-12

Bench: Shri D. Manmohan & Shri Rifaur Rahman

For Appellant: Shri C. SureshFor Respondent: Smt. N. Swapna, DR
Section 154Section 194ASection 201(1)Section 271CSection 273B

…essee has a reasonable cause for failure to deduct tax at source. (i) Sukhdev Singh vs. JCIT, ITAT Chandigarh Bench in ITA No. 116/CHD/2014, dt 29.9.2014; (ii) Muthoot Bankers vs. JCIT (2011) 12 ITR (TRIB) 40 (Cochin); (iii) CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC) and (iv) Hon’ble Delhi High Court in the case of Woodward Governor (India) Ltd vs. CIT. 15. Ld. CIT(A) observed that u/s 194A exemption from TDS is limited only to interest payments to Banks and not to NBFCs. There cannot be any scope for confusion in this regard as Banks are different from NBFCs. He further observed that though the assesse…

Siby Mining and Infrastructure Private Limited, Hyderabad vs. Jt. Commissioner of Income Tax, TDS Range-2, Hyderabad

In the result, appeals filed by the assessee are allowed

ITA 29/HYD/2018[2010-11]Status: DisposedITAT Hyderabad11 May 2018AY 2010-11

Bench: Shri D. Manmohan & Shri Rifaur Rahman

For Appellant: Shri C. SureshFor Respondent: Smt. N. Swapna, DR
Section 154Section 194ASection 201(1)Section 271CSection 273B

…essee has a reasonable cause for failure to deduct tax at source. (i) Sukhdev Singh vs. JCIT, ITAT Chandigarh Bench in ITA No. 116/CHD/2014, dt 29.9.2014; (ii) Muthoot Bankers vs. JCIT (2011) 12 ITR (TRIB) 40 (Cochin); (iii) CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC) and (iv) Hon’ble Delhi High Court in the case of Woodward Governor (India) Ltd vs. CIT. 15. Ld. CIT(A) observed that u/s 194A exemption from TDS is limited only to interest payments to Banks and not to NBFCs. There cannot be any scope for confusion in this regard as Banks are different from NBFCs. He further observed that though the assesse…

Siby Mining and Infrastructure Private Limited, Hyderabad vs. Jt. Commissioner of Income Tax, TDS Range-2, Hyderabad

In the result, appeals filed by the assessee are allowed

ITA 28/HYD/2018[2009-10]Status: DisposedITAT Hyderabad11 May 2018AY 2009-10

Bench: Shri D. Manmohan & Shri Rifaur Rahman

For Appellant: Shri C. SureshFor Respondent: Smt. N. Swapna, DR
Section 154Section 194ASection 201(1)Section 271CSection 273B

…essee has a reasonable cause for failure to deduct tax at source. (i) Sukhdev Singh vs. JCIT, ITAT Chandigarh Bench in ITA No. 116/CHD/2014, dt 29.9.2014; (ii) Muthoot Bankers vs. JCIT (2011) 12 ITR (TRIB) 40 (Cochin); (iii) CIT vs. Bank of Nova Scotia (2016) 380 ITR 550 (SC) and (iv) Hon’ble Delhi High Court in the case of Woodward Governor (India) Ltd vs. CIT. 15. Ld. CIT(A) observed that u/s 194A exemption from TDS is limited only to interest payments to Banks and not to NBFCs. There cannot be any scope for confusion in this regard as Banks are different from NBFCs. He further observed that though the assesse…

Addl. CIT (TDS), Ghaziabad vs. The Principal Officer, Noida

In the result all the appeals filed by the assessee in case of both the assessee for all the three AYs are allowed and appeal filed by the revenue for both the assessee for all the three AYs are di...

ITA 4840/DEL/2015[2011-12]Status: DisposedITAT Delhi23 Nov 2017AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Smt Sulekha Verma, CIT DRFor Respondent: Shri A. K. Garg, Adv
Section 133ASection 194ISection 201Section 271CSection 273B

…ubmitted that there is no contumacious conduct proved by the revenue of the assessee for non-deduction of tax at source. He therefore submitted that issue is squarely covered in favour of the assessee by the decision of the Honourable Supreme Court in case of 380 ITR 550 in CIT vs Bank of Nova Scotia wherein it has been held that the tax and interest u/s 201 (1) and (1A) has been paid and no case has been made by the revenue for levy of the penalty in absence of any contumacious conduct, penalty levied by the learned assessing officer has been correctly cancelled by the coordinate bench. 9. We have carefully cons…

Addl. CIT (TDS), Ghaziabad vs. The Principal Officer, Noida

In the result all the appeals filed by the assessee in case of both the assessee for all the three AYs are allowed and appeal filed by the revenue for both the assessee for all the three AYs are di...

ITA 4837/DEL/2015[2011-12]Status: DisposedITAT Delhi23 Nov 2017AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Smt Sulekha Verma, CIT DRFor Respondent: Shri A. K. Garg, Adv
Section 133ASection 194ISection 201Section 271CSection 273B

…ubmitted that there is no contumacious conduct proved by the revenue of the assessee for non-deduction of tax at source. He therefore submitted that issue is squarely covered in favour of the assessee by the decision of the Honourable Supreme Court in case of 380 ITR 550 in CIT vs Bank of Nova Scotia wherein it has been held that the tax and interest u/s 201 (1) and (1A) has been paid and no case has been made by the revenue for levy of the penalty in absence of any contumacious conduct, penalty levied by the learned assessing officer has been correctly cancelled by the coordinate bench. 9. We have carefully cons…

Japyee Sports International Ltd., Noida vs. DCIT (TDS), Noida

In the result all the appeals filed by the assessee in case of both the assessee for all the three AYs are allowed and appeal filed by the revenue for both the assessee for all the three AYs are di...

ITA 4291/DEL/2015[2011-12]Status: DisposedITAT Delhi23 Nov 2017AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Smt Sulekha Verma, CIT DRFor Respondent: Shri A. K. Garg, Adv
Section 133ASection 194ISection 201Section 271CSection 273B

…ubmitted that there is no contumacious conduct proved by the revenue of the assessee for non-deduction of tax at source. He therefore submitted that issue is squarely covered in favour of the assessee by the decision of the Honourable Supreme Court in case of 380 ITR 550 in CIT vs Bank of Nova Scotia wherein it has been held that the tax and interest u/s 201 (1) and (1A) has been paid and no case has been made by the revenue for levy of the penalty in absence of any contumacious conduct, penalty levied by the learned assessing officer has been correctly cancelled by the coordinate bench. 9. We have carefully cons…