2021 (8) TMI 467

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....llenged, therefore, same were heard together and dispose off by way of this consolidated order for convenience. 2. In both these appeals identical grounds have been raised. For the sake of brevity, the grounds raised in ITA No. 1381/Del/2018 for assessment year 2014-15 are reproduced as under: 1. That the penalty as levied by AO and sustained by the CIT(Appeals) u/s 271C of the IT Act is arbitrary, unjust and illegal on various factual and legal grounds. 2. That in the absence of any demand outstanding against the payee, the assumption of jurisdiction by AO u/s 201 and 201(1A) of the IT Act is arbitrary, unjust and illegal and consequently the penalty as levied by the AO u/s 271C of the IT Act and sustained by the CIT(Appeals) in furt....

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....nd 201(1A) of the Act on the assessee. In view of the default of non-deduction of tax at source on interest payment, the Assessing Officer initiated penalty under section 271C of the Act and after considering submission of the assessee, he levied penalty of Rs. 10,20,386/- for assessment year 2014-15 and Rs. 12,21,894/- for assessment year 2015-16. On further appeal, the Ld. CIT(A) upheld the penalty in view of liability raised by the Assessing Officer under section 201(1) and 201(1A) of the Act. 4. Before us, the parties appeared through Video Conferencing facility. The learned Counsel of the assessee filed through email a copy of the order of Tribunal relied upon. 5. The learned Counsel of the assessee submitted that the Tribunal in ITA....

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....ve withdrawals. The prime responsibility relating to TDS deduction u/s 201 is of the recipient assessee to pay the tax directly once they filed From No. 15G/15H and any tax liability will be held as pending in recipient assessee's cases and hence Section 201 of the Act cannot be invoked as it is a recovery provision as submitted by the Ld. AR. The decisions given by the Ld. AR also reiterates similar facts. Besides this, in Assessment Years 2002-03 to 2004-05, in the case of the assessee itself in the same branch, the Delhi ITAT in ITA Nos. 5992 to 5994/Del/2012 dated 4th March 2016, after following the judgment of the Jurisdictional Allahabad High Court in the case of the assessee itself, has quashed the proceedings u/s 201 of the Act on t....