TaxTMI 
TaxTMI 
2022 (6) TMI 1160
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....e Managing Director of the assessee-company stating therein the reasons for belated filing of this appeal. On perusal of the reasons stated for belated filing of the appeal, we noticed that no latches can be attributed to the assessee and there is sufficient cause in filing this appeal belatedly. Accordingly, we condone the delay in filing this appeal and proceed to dispose of this appeal on merits. 3. The solitary issue raised is whether the CIT(A) is justified in confirming the Assessing Officer's order, wherein penalty has been imposed u/s 271C of the I.T.Act amounting to Rs.9,12,060. 4. The brief facts of the case are as follows: The assessee is a company engaged in the business of running a resort, namely, `The Elephant Court'....
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....as not justified in holding that the provisions of section 2738 are not applicable in this case by relying on the decision of the Hon'ble High Court of Kerala in the case of US Technology Ltd (2010) 195 Taxman 323 (Ker). However the appellant also has relied on the same decision of Hon.High Court of Kerala by stating that: "It is pertinent to point out that the Hon'ble High Court, in the concluding paragraph, has said that failure to remit on account of failure to recover for any reason, whatsoever, then the case cal/s for reduction of penalty, if not waiver. Similarly, recovery and remittance of tax though with delay, but with interest, before detection is certainly a mitigating circumstance for waiver or reduction of pena....
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....a habitual defaulter in the matter of depositing taxes deducted at sources to the Central Government account. The relevant portion of the impugned order is reproduced here in for the sake of clarity: "Verification of the records revealed that the assessee is a habitual defaulter in the matter of depositing tax deducted at source to the Central Government Account There was delay in depositing tax deducted at source during this financial year 2009-10. This delay in depositing tax deducted at source has continued during the F.Y.2007-08, 2008-09 and subsequently financial year 2010-11 also". 10. Considering the above facts and circumstances of this case and also relying on the observations made by the jurisdictional High Court....
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....Home India Pvt. Ltd. v. CIT reported in (2016) 383 ITR 225 (Ker.). The Full Bench of the Hon'ble Kerala High Court had held penalty u/s 271C(1)(b) of the I.T.Act for non-remittance of tax deducted at source will have application only to a limited extent, involving sub-section (2) of section 115-O of the I.T.Act (coming under Chapter XII-D) or covered under the "second proviso" to section 194B f the I.T.Act (coming under Chapter XIIB). The relevant finding of the judgment of the Full Bench of the Hon'ble Kerala High Court reads as follow:- "Section 271C of the Income-tax Act is quite categorical. Its scope and extent of application is discernible from the provision itself, in unambiguous terms. When the non-deduction of the whole or....
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.... deducted at source u/s 194C, 194J, 194I and 192B of the I.T.Act. 9.3 The Full Bench of the Hon'ble Kerala High Court in the case of Lakshadweep Development Corporation Ltd. v. Addl.CIT & Anr. (supra) while reversing the Division Bench ruling in the case of U S Technology International Limited (supra), had held that section 273B of the I.T.Act shall be applicable for also the cases covered u/s 271C(1)(b) of the I.T.Act and not confined to section 271C(1)(a) of the I.T.Act. The relevant finding of the Full Bench of the Hon'ble Kerala High Court reads as follows:- "Section 273B of the Income-tax Act stipulates that no penalty shall be imposed on the person or the assessee, as the case may be, for any failure referred to in the pro....
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....elevant financial year and accumulated losses as on 31.03.2010 was Rs.10,87,90,555. In addition to the heavy losses, the assessee had huge liability towards bank loan and other borrowings, which is evident from the balance sheet placed on record. In the subsequent years, the bank had taken action under SARFAESI Act and taken possession of the resort and the resort was kept closed for a long time. It was also submitted that after bank had taken possession of the property, one of the NRI Directors had brought in additional funds and settled the dues to the bank and reopened the resort. However, after reopening due to Covid pandemic, resort was again closed in the month of March 2020. Therefore, the total accumulated losses as per the books of....