TaxTMI 
TaxTMI 
2011 (3) TMI 239
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....opose to dispose these vide a common order. 2. These appeals arise out of the assessment years 2002-03 (ITA No. 429/2009), 2003-04 (ITA No. 1397/2008) and 2004-05 (ITA No. 1398/2008). The assessee herein is engaged in the business of manufacture and sale of Chocolates, Bournvita, etc. A spot verification under Section 133A of the Income Tax Act (hereinafter, in short referred to as „the Act‟) on the premises of the assessee was conducted, which revealed that the assessee had engaged ten Clearing & Forwarding Agents (hereinafter, in short referred to as „CFA‟) and was paying rent for the usage of space in warehouse and deducting tax at source under Section 194C of the Act. The assessee was also deducting TDS....
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....ibed rates. One of the explanations given is that the same was done on the advice of the Professional Advisors being CA, Advocate, etc. However, inspite of specific repeated requests, copy of such opinion was not placed on record. This compels me to infer that this is a misstatement made by the assessee. 4.5. Further, the provision of 194I, 194J and 194C are quite clear and leave no ambiguity. Nor was there any doubt in the mind of the assessee. The default was a conscious decision to deduct Tax at Source at a lower rate / not deduct Tax at Source at all. And since it was not bonafide, the assessee has to account for the consequences. 3. The CIT(A) referred to various judgments of different High Courts and that of the Su....
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....ia would be accommodated in hotels. While making payment to hotel, assessee did not deduct TDS u/s 194-I. In response to the show cause notice, the assessee claimed that there was a confusion in definition and its applicability of the provisions of 194-I, which was later on clarified by circular No. 715 dated 8.8.95 issued by CBDT. The assessing officer, however, levied penalty u/s 271-C. On appeal it was held that there was a sufficient cause of such short deduction of tax. This view of the ld appellate Commissioner was affirmed by the Tribunal. In the present appeal also the penalty was levied due to difference of opinion. During arguments, plea was also raised on behalf of the revenue, that the quantum appeal has become final and no appe....
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.... which came to be allowed. The present appeals are filed by the revenue in the penalty proceedings wherein the impugned order came to be passed by the Tribunal as noted above. So far as the facts of the case are concerned, there is no dispute that the composite agreement was made by the assessee with CFAs for storage, leading, unloading, clearing, forwarding and supply of manpower for the jobs as per requirement of the assessee. There is also no dispute that the assessee had been consistently following the practice of deducting TDS under Section 194C. There is also no dispute that the deductions were required to be made by the assessee under Section 194I and 194J for the payments being made by the assessee under different heads to the CFAs.....
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....ely, National Panasonic India (P) Ltd. v. DCIT (2005) 3 SOT (Del), Woodward Governor India P. Ltd v. CIT (2002) 253 ITR 745 (Del), CIT v. Itochu Corporation (2004) 268 ITR 172 (Del), CIT v. Lurgi Oil Gas Chemie Gmb (2004) 141 Taxman 348 (Del), CIT v. NHK Japan Broadcasting Corp., (2006) 284 ITR 357 (Del) CIT v. Japan Radio Co. Ltd. (2006) 286 ITR 682 (Del) and OMEC Engineers v. CIT (2007) 294 ITR 599 (Jharkhand). 6. We need not to refer to all the aforecited judgments since the ratio in all of them is similar. However, we may refer to the decision of Woodward (supra) of the Division Bench of our High Court, wherein the words and phrases „reasonable cause‟ in Section 273B of the Act which provides the provision of impos....
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....as reasonable cause or not for the assessee not to deduct tax at source at all or under some particular provision than prescribed was a question of fact which had to be seen in the facts and circumstances of each case. 8. In view of the above principles of law, we see that the assessee had been deducting tax from the payments payable to CFA under Section 194C on a consolidated basis towards different heads. There is no reason to disbelieve the assessee that the same was being done by its employees on misconceived professional advice given by the Chartered Accountants. Since the payment were to be deducted from CFA no benefit was to be derived by the assessee for making lesser or inaccurate deductions. No malafide intention of any ....