2011 (3) TMI 1030

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....ssment year 2006-07. The only ground taken is that the CIT(A) erred in cancelling the penalty of Rs.2,14,550/- imposed on the assessee under section 272A(2)(c) of the Income Tax Act, 1961.   2. The assessee is a private limited company. It was bound to deduct tax from certain payments made by it. The tax was duly deducted. However, the assessee failed to comply with section 206/206C of the A....

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.... 3. The only question to be considered is whether there was any reasonable cause for the assessee for the delay. The CIT(A) has entered the following findings:-   (a) Section 200(3) is the applicable provision and this provision was inserted with effect from 01.04.2005 by the Finance (No.2) Act, 2004. This was the first year after the introduction of the provision.   (b) Under Rule 31A....

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....bsp; (f) Despite all the difficulties, the quarterly TDS returns ultimately were filed by the assessee voluntarily without being prompted by any notice from the department.   (g) There is no revenue loss since the tax has been deducted and paid to the Government. Only the paper work was delayed, which is only a technical breach.   4. The above findings, in our opinion, also constitute....