APPLICABILITY OF SECTION 271 C OF INCOME TAX ACT

[AJIT Tiwary]

Dear Expert,

i would like to explan the matter through example, as follow:

Mr. A started its profession in the year 2012-13 and had not taken registration of TAN under income tax act. during financial year 2015-16 he has taken TAN and pay all liabilities related to TDS provision of income tax act. after few year survey has been conducted in his premises and liability related to financial year 2014-15 arised which also has been paid by Mr.A. now penality under section 271C has been initieted for the financial year 2014-15.

question is that :is Mr. A liable for penalty if he has not taken registration TAN in financial year 2014-15. if yes please guide me how and, if no please provide me case law which will be justifiable for that.

[KASTURI SETHI]

The following case law is useful for you :-

2019 (9) TMI 631-ITAT Delhi in the case of Shiv Sai Infrastructure (P) Ltd. Vs.ACIT, Circle 77, New Delhi Date of decision : 11.9.2019.

AI Summary

Failure to obtain TAN may attract penalty under income tax law; tribunal decision cited as relevant authority. The query asks whether a taxpayer who began practice before obtaining TAN, later registered TAN and paid TDS liabilities (including for the earlier year), is liable to a penalty under Section 271C for the earlier year where TAN was not obtained at that time; the reply cites a tribunal decision as a relevant authority but does not state an adjudicative result.