2018 (3) TMI 432

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....ted in the penalty order are that during verification in the case of the assessee, it was noticed that assessee has made payment of lease rent to Noida Authority, on which, no TDS was deducted as per the provisions of Section 194-I of the I.T. Act. The A.O. passed the orders under sections 201(1) / 201(1A) of the Act on 25th March, 2015 for non-deduction of tax and also initiated the penalty proceedings. The assessee submitted before A.O. the details with explanatory note that TDS deduction is not applicable in the case of Noida Authority. The A.O. however, in the order under section 201 of the Act observed that "Noida Authority is not exempt as it is not Local Authority." The status of Noida Authority as Local Authority has not been accept....

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....t it was not liable for deduction of tax at source. The Ld. CIT(A) did not accept the contention of assessee because the deductee cannot influence the deductor in not following the law. The assessee also failed to prove any reasonable cause. Therefore, all the appeals of the assessee were dismissed. 4. The Learned Counsel for the Assessee reiterated the submissions made before the authorities below and submitted that assessee made efforts to get clarification from Noida Authority whether its income is exempt under section 10(20) of the I.T. Act. But, there was no reply given by them. He has submitted that due to above reasonable cause, the assessee did not deduct TDS, therefore, penalty may not be imposed. 5. The Ld. D.R. however, obj....

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....Act, which fact was also has not proved by the assessee because it was incorrect. Therefore, the assessee had been negligent in not deducting TDS on lease rent paid to Noida Authority without any justification. Since assessee failed to prove its bonafide through any relevant and cogent evidence, therefore, assessee cannot take benefit of Section 273B of the I.T. Act as the assessee has failed to prove any reasonable cause for failure to comply with provisions of law. No interference is called for in the matter. 7. Learned Counsel for the Assessee lastly submitted that since the assessee moved an application under section 154 before Ld. CIT(A) for rectification of the impugned order, therefore, appeals of the assessee may be kept in abeya....