TaxTMI 
TaxTMI 
2005 (5) TMI 38
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....nly if the tax has been deducted? 2. Whether, on the facts and in circumstances of the case, the hon'ble Income-tax Appellate Tribunal was correct in holding that since the tax has not been deducted, there is no violation of the provisions of section 206 of the Income-tax Act, 1961 and, therefore, penalty is not leviable without appreciating the fact that sections 192 and 206 read with rule 36 of the Income-tax Rules, 1962 are interlinked?" Sri D. D. Chopra, learned counsel for the appellant, has vehemently urged that non-deduction of tax at source, for which penalty has already been imposed under section 271C of the Income-tax Act, would not absolve the assessee of the penalty imposable under section 272A(2)(g) and 272A(2)(c). His submis....
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.... had issued the certificate of tax deducted at source late, a notice was issued to show cause as to why penalty be not imposed under section 272A(2)(g). Against this notice also, the assessee's reply was not found satisfactory and, therefore, a penalty of Rs. 99,600 and Rs. 63,100 for the financial years 1993-94 and 1994-95, respectively, was imposed. In appeals preferred against the aforesaid penalties, the Commissioner of Income-tax (Appeals) cancelled the penalties and allowed the appeal. Aggrieved by the aforesaid order of the Commissioner of Income-tax (Appeals), the Revenue preferred an appeal before the Income-tax Appellate Tribunal, which has also been dismissed. Section 203, which requires issuance of certificate by the person de....
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....o the prescribed income-tax authority in such form and verified in such manner, as may be prescribed, and setting forth aforesaid particulars. The relevant extract of section 206 is being quoted below: "206. Persons deducting tax to furnish prescribed returns.-(1) The prescribed person in the case of every office of Government, the principal officer in the case of every company, the prescribed person in the case of every local authority or other public body or association, every private employer and every other person responsible for deducting tax under the foregoing provisions of this Chapter shall within the prescribed time after the end of each financial year prepare and deliver or cause to be delivered to the prescribed income-tax auth....
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....abundantly clear, that the provisions contained therein, would only be attracted, if the tax has been deducted at source. In case the tax is deducted at source, the responsibility lies upon the person deducting the tax in accordance with the provisions of the Act to issue a certificate to the effect that tax has been paid in the manner prescribed in section 203 and if there is a violation on the part of the said person in issuing the certificate to the effect that tax has been deducted within the given period or for violation of any other specific conditions prescribed therein, he would render himself open for imposition of penalty for non-compliance with the aforesaid provisions of section 203. Likewise under section 206, if the tax is de....