2017 (5) TMI 412

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....ed CIT(A) had arisen from the penalty order dated 23rd September, 2014 passed by learned Assessing Officer ( hereinafter called " the AO") u/s 271(1)(c) of the Income-tax Act, 1961 (Hereinafter called "the Act"). 2. The grounds of appeal raised by the assessee in memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called "the tribunal") read as under:- "The appellant objects to the order dated 12.01.2016 received on 29.02.2016 passed by the Commissioner of Income Tax (Appeals) -2 (hereinafter referred to as "CIT(A) Mumbai), in an appeal against an order u/s 271(l)(c) of the Income Tax Act, 1961("The Act") on the following ground of appeal. 1. The learned CIT(A) has erred in confirming the penalty under sectio....

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....al Ground: 7. The Appellant ; therefore prays that the order of the CIT(A) be set aside and grant the relief from penalty." 3. Brief facts of the case are that the assessee company is manufacturers of vitamin products, protein concentrate, soya lecithin powder and granules. The A.O. had framed an assessment u/s 143(3) of 1961 Act vide orders dated 27-03-2014 whereby additions were, inter-alia, made to the tune of Rs. 2,09,30,565/- on account of tax deducted at source but not paid to the credit of Central Government, u/s 40(a)(ia) of the Act. The detail of TDS deducted but not paid to the credit of Central Government, with disallowance made by the AO are as under:- S No. Particulars TDS amount opening TDS amount current year Addition....

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....th provisions of 1961 Act. The A.O. rejected the contentions of the assessee and observed that non-payment of TDS to the credit of Central Government is not reflected by the assessee in the computation of income filed by the assessee with the Revenue as well in the audit report u/s 44AB of 1961 Act . It was also observed by the AO that the assessee wrongly claimed that tax deducted at source was paid to the credit of Central Government within the prescribed time as per section 40(a)(ia) of the Act. The A.O. observed that the assessee had deducted the tax at source but did not deposit the tax to the credit of Central Government and assessee was using the government's funds for its business purposes, hence, the AO levied the penalty u/s 271(1....

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....at the A.O. levied the penalty u/s 271(1)(c) of the Act to the tune of Rs. 62,79,110/- vide his order dated 23rd September, 2014 passed u/s 271(1)(c) of 1961 Act , which was later confirmed by the ld. CIT(A) in his ex-parte appellate order dated 12-01-2016. Before the ld. CIT(A), none appeared during appellate proceedings despite service of notices by learned CIT(A). The penalty was levied by the AO u/s 271(1)(c) of 1961 Act due to non-deposit of tax deducted at source with the Central Government and also non disclosure of particulars of non-deposit of tax deducted at source with Central Government in the computation of income filed with the Revenue in the return of income filed as well in tax-audit report u/s 44AB of 1961 Act. The assessee....