2023 (2) TMI 296

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....is of information received from the Commissioner of income-tax, TDS-2, New Delhi observed to the effect that the Assessee has failed to deduct the tax at source as required under the provisions of Chapter-XVVB of the Act, for the following payments: Sl. Particulars of Default Base Amount (Rs.) Interest Amount (Rs.) Total Amount (Rs.) 1 Short deduction of TDS (F.Y. 2012-13) 9,40,800/- - 9,40,800/- 2 Delay in deduction, not deposit (F.Y. 2013-14) 1,93,162/- 28,026/- 2,21,188/-   Total 11,33,962/- 28,026/- 11,61,988/- Therefore the AO show caused the Assessee vide letter dated 18.05.2015 and subsequently show cause notices dated 24.11.2015 and 25.2.2016 for imposition of penal....

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....dent. This view gets support from the decision of Hon'ble High Court in the case of IKEA Trading Hong Kong Ltd (Supra). Thus, the arguments of the Ld. AR on this account are also rejected. 4.2. In respect of merits of the imposition of penalty u/s 271C, undisputedly the appellant has made the payment for professional/architectural services to M/s Haskol and M/s Mile Stone Estate without deducting tax at source within the time prescribed. It is only after the tax auditor of the appellant company pointed out the error, the appellant deducted the tax in subsequent F.Y. Thus, from the facts of the case, it emerges that the appellant without a reasonable cause failed to deduct the tax at source on professional/architectural charges. Thu....

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....eculiar facts and circumstance of the case. The Hon'ble Bench of the Tribunal in Assessee's own case for A.Y. 2007-08 to 2010-11 (supra), in paras 4 & 5 was pleased to observe as under: "4. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that undisputedly no order was passed under section 201(1) of the Act holding the assessee to be in default. The Assessing Officer has passed an order under section 201(1A) of the Act charging interest on the delayed payment of tax. We have also carefully perused the relevant provisions of section 271C of the Act and we find that the penalty under section 271C of the Act can only be levied where the assessee fails to deduct the whole or a....