2016 (5) TMI 1424

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.... the I. T. Act., for disallowances made on account of non deduction of TDS. 3. At the outset, the learned AR submitted that learned CIT(A) instead of allowing relief to the assessee had increased the amount of penalty which is not justified at all. Explaining the facts of the case the learned AR submitted that assessee had made certain payments out of which some part was paid during the year and some part was outstanding at the close of year. The Assessing Officer made the additions on account of non deduction of TDS for whole of such payments on which TDS was not deducted. It was further submitted that Hon'ble Tribunal in ITA NO.417(Asr)/2012 for Asst. Year 2009-10, vide order dated 25.02.2016 had dismissed the appeal of Revenue in quan....

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.... We find that it is an undisputed fact that penalty was imposed by the Assessing Officer for disallowance made u/s 40(a)(ia) of the Act for non deduction of tax on various payments. This fact is verifiable from the penalty order itself. We further find that the Hon'ble ITAT, Hyderabad Bench in the case of ACIT, Circle3(1), VS. Seaways Shipping Ltd., Secundrabad in ITA No.80(H)/2011 vide order dated 17.06.2011 has deleted the similar penalties imposed by the authorities below. The relevant findings of the Hon'ble Tribunal are contained in para 5 to 6. For the sake of convenience the relevant findings are reproduced below. "5. At the time of hearing on 16.6.2011, none appeared on behalf of the assessee. We heard the Departmental Repr....