2015 (10) TMI 71

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....these appeals pertain to the same assessee involving common issues arising out of identical set of facts and circumstances, therefore, as a matter of convenience, these appeals were heard together and are being disposed off by way of this consolidated order. However, in order to understand the implication, it would be necessary to take note of the facts of one appeal. We are, accordingly, narrating the facts, as they appear in the appeal in ITA no. 1157/Mum./2011, vide which, following grounds have been raised:- (i) The Ld. ClT (A) has erred on facts and in law in deleing penalty imposed u/s. 272A(2)(c), without properly appreciating the factual and lege matrix of the case as clearly brought out in order u/s. 272A(2) (c) of the Income ta....

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....section 201(1A), was also charged to the tune of Rs. 40,20,493. Not only that penalty under section 271C was also levied by the ACIT (TDS), imposing penalty of Rs. 60,91,665, vide order dated 27th July 2008. During the course of the impugned penalty proceedings, the assessee submitted that there was a reasonable cause as the assessee was not having funds at all to deposit the same in the Government account as the company had incurred heavy losses. In support reliance was placed on the decision of Allahabad High Court in CIT v/s Ram Memorial Education Promotion Society, [2006] 287 ITR 155 (All.). However, the ACIT (TDS) rejected the assessee's contention and levied the penalty under section 272A(2)(c). 3. Before the learned Commissioner (....

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....gard to the distinction made by the ACIT on the decision of the Hon'ble Allahabad High Court. 4. The learned Commissioner (Appeals) duly appreciated the assessee's contention and held that the ACIT has not ascribed any reason as to how the explanation of the assessee is not tenable and also he has not made out a case, whether the assessee had acted deliberately in defiance of law or was guilty of any contumacious conduct or dishonesty. He appreciated the assessee's bonafide reason that for filing of the return of income under section 206, the requisite particulars had to be fulfilled and when the assessee has not paid the tax to the Government account, then he was in no position to file the return of income. Thus, there was a bonafid....

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....f Rs. 60,91,665 under section 271C. The order under section 201(1) and 201(1A) has already been confirmed by the Tribunal. Once, already a penalty under section 271C has been levied for non-payment of TDS amount to the Government account, then the assessee had a bonafide reason that the return of income under section 206, giving particulars of TDS deposited and cheque number was not required to be filed, because the requisite details and particulars were not there with the assessee. Under these circumstances, we agree with the findings and the conclusion of the learned Commissioner (Appeals) that there was a reasonable cause within the meaning of 273B for not imposing penalty. The reasoning and the conclusion given by the learned Commission....