TaxTMI 
TaxTMI 
2023 (2) TMI 296
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....ner 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 penalty u/s 271C read with Section 274(1) of the Act. The Assessee in respons....
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.... 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. Thus, the decisions relied upon by the Ld. AR become distinguishable on the facts. Accordingl....
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....se 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 any part of the tax as required by or under the provisions of Chapter XVII-B or pay the whole or any part ....