2017 (4) TMI 1306

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....ls: i. The learned CIT(A) has erred in law as well as well as facts of the case 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. ii. On the facts and in the circumstances of the case, the learned CIT(A) ought to have upheld the order of the Assessing Officer. 3. The relevant facts as culled out from the materials on record are as under:- It has come to the notice that the assessee company had failed without reasonable cause to deduct tax at source as also the assessee company has failed to pay the amount of TDS to the credit of Government account without specified time during Financial Year 2013-14 and have thus default....

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.... 6. Considering all the relevant facts it is clear from the records that the assessee has defaulted in complying with the TDS provisions of the IT Act and has thus rendered itself liable for levy of penalty u/s. 271C of the I.T. Act. 7. Total amount of tax the assessee has failed to deduct or pay to the Govt. Account works out to Rs. 83,10,083/- as under: TDS Payable upto Nov., 2013 -Rs. 41,73,401 TDS on salary upto Oct., 2013 -Rs. 9,89,073 TDS payable from Dec., 2013 to March, 2014 -Rs. 31,47,609    As per provisions of Section 271C of the I.T. Act the assessee company is liable to pay, by way of penalty, a sum equal to the amount of tax which it has failed to deduct or pay as the case may be. Accord....