TaxTMI 
TaxTMI 
2023 (5) TMI 122
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....on 28.03.2017 at Noida and on the same date i.e. 28.03.2017, the Deputy Commissioner of Income Tax, International Taxation Circle, Lucknow has issued the demand notice under Section 156 of the Income Tax Act. 4. That when the appellant was having reasonable cause in not deducting TDS u/s 195 the penalty imposed is bad in law. 5. That the appellant was not in the knowledge that Smt. Nidhi Ram Singh was an NRI and there were no circumstances to suggest to appellant that she was NRI hence there was reasonable cause with appellant in not deducting TDS in terms of section 195. 6. That the order passed is against the merit, circumstances and legal aspects of the case." 3. The brief facts of the case are that the assessee purchased a plot of land for a sale consideration of Rs. 3,04,50,750/- on 14.06.2005. One of the co-sellers of the property Smt. Nidhi Raman was non resident Indian (NRI) who had 1/5th share in the property to the tune of Rs. 60,00,000/-. The assessee while making payment to Smt. Nidhi Raman failed to withhold tax under section 195 of the Income Tax Act, 1961 (the "Act") being the payment made to a NRI. Consequently proceedings under section 201(1)/201(1A) of ....
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....which the proceedings in the course of which action for the imposition of penalty has been initiated or, completed or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later. It is submitted that in the present case, the relevant financial year expired on 31.03.2016 and six month period from the date of order i.e. 30.12.2015, expired on 30.06.2016. Consequently, the present penalty order dated 28.03.2017 and the demand notice dated 28.03.2017 issued in furtherance thereof are barred by limitation and, as such, are not enforceable. 4.3 From the arguments of the appellant it is gathered that the appellant is considering the date of initiation of penalty proceedings u/s 271C of the Act from the date of passing the order u/s 201(1)/201(1A) of the Act. Penalty proceedings u/s 271C of the Act is an independent proceeding and is to be levied by Joint Commissioner of Income Tax on a reference received in this regard by the assessing officer passing the order u/s 201(1)/201(1A) of the Act. In the present case, the AO has passed the order u/s 201(1)/201(1A) on 30.12.2015. In the assessment order the AO has mentioned as....
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....s 195 of the Act. Hence, it is held that the officer passing the orders u/s 201(1)/201(1A) and 271C of the Act is having jurisdiction over the appellant assessee to pass such orders. Ground of appeal also fails on this issue. 4.8 It is further gathered that notice u/s 271C(1)(a) was issued on 03.05.2016 & 29.08.2016. The appellant has received these notices and a submission dated 03.06.2016 was also filed before the assessing officer. In view of such facts, it is evident enough that the appellant was provided reasonable opportunity of being heard during the penalty proceedings. The submission made by the appellant during the penalty proceedings has been duly mentioned by the AO in the impugned order. In view of such facts, it is held that reasonable opportunity of being heard is provided to the appellant during the penalty proceedings. Ground of appeal on this issue is dismissed. 4.9 In regard to reasonable cause for not deducting TDS, the appellant only reiterates that the appellant was not in knowledge that Smt. Nidhi Ram Sing was an NRI. It is submitted that "That the appellant was not in knowledge that Smt. Nidhi Ram Sing was an NRI. There were no circumstances also to su....
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....out what happened of our courier even after taking time for more than a month. We were in a bonafide belief that our appeals filed were delivered before Tribunal New Delhi well within time by the Courier service. PRAYER We request your honours to kindly condone delay for filing the appeal as there was no default from our side. The Appeals for the Asstt Year 2004- 05 to 2006-07 are being again filed alongwith this condonation application as appellant wants to go under scheme Vivaad Se Vishwas Tak to end all the litigation." 7. Record shows that before the Tribunal the hearing was fixed on 25.07.2022, 29.09.2022, 05.12.2022, 16.02.2023, 25.04.2023. None attended for and / or on behalf of the assessee whereas the Ld. Sr. DR was present on all the above dates of hearing. We, therefore, proceed to decide the appeal ex-parte after hearing the Ld. Sr. DR. It is submitted by the Ld. Sr. DR that it is not a fit case for condoning the impugned delay in filing the appeal. 8. We have considered the submissions of the Ld. DR and perused the application for condonation of delay available in the records. It is observed that the assessee company has alleged that the inordinate delay in ....