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2018 (2) TMI 671

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....stated to be a substantial question of law: "Whether the Appellate Tribunal has erred in law and on facts in holding that penalty of Rs. 83,10,083/- u/s.271C cannot be sustained merely on the ground of default without considering the existence of reasonable cause?" 2. The Assessing Officer noticed that during the financial year 2013-14, the assessee company had failed to deduct tax at source and also failed to pay the amount of TDS to the credit of the Government account within the specified time and had accordingly committed default of the provisions of section 271C of the Act. 3. Show cause notices dated 28.8.2014 and 9.9.2014, came to be issued to the assessee calling upon it to show cause as to why penalty under section 271C of the....

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....e between the assessee company and the contractor, due to which the assessee could not pay the tax deducted at source within the specified time as the funds were not received from the Government bodies, which led the assessee company to a financial crisis. It was contended that the submissions of the assessee were not found to be false or non-genuine by the Joint Commissioner of Income Tax, and, therefore, in view of the provisions of section 273B of the Act, penalty could not have been imposed upon the assessee as it had proved that there was reasonable cause for such failure. 7. The Commissioner (Appeals), upon considering the material on record was of the opinion that the assessee had explained the reason for delay in deposit of the tax....