2001 (10) TMI 762

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....e of its carrying out activities as such, assessee had to engage labour and hire lighterages. During the financial year 1994-95, assessee made the following payments:-   1. Transport charges Rs. 5,753   2. Lighterage charges Rs. 58,595   3. Labour contracts Rs. 10,830         Rs. 75,178 3. It was found that under section 194C of the Act, though the assessee was required to deduct tax at source (TDS) from the above payments no such deduction was made and hence penalty proceedings under section 271C of the Act were initiated. Several submissions were made by the assessee. All the submissions were rejected by the Assessing Officer. Reliance was placed by t....

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.... present case since the accounting year ended on 31-3-1995, assessee had a reasonable and bona fide belief that it was not liable deduct tax. Further, certain payments were below Rs. 20,000 which did not call for any TDS and the fact that assessee had paid the tax later on after spot verification, was disregarded by the Assessing Officer and penalty was levied. Reliance was placed on the decision of Supreme Court in Birla Cement Works v. CBDT [2001] 248 ITR 216. The ld. DR relied on the orders of the authorities below. 6. We have duly considered the rival contentions and the material on record. The decision of the Supreme Court in the case of Birla Cement Works (supra) is quite relevant and applicable to the facts of the case. In the sai....