2025 (3) TMI 1466

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....erusal of case records, the appeals are disposed-off as under. First, we take up appeal for AY 2012-13 which arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 01-08- 2024 confirming levy of penalty u/s 271C for Rs. 1.67 Lacs. 2. It emerges that impugned penalty has been levied for short deduction of tax at source on payment of Leave Fare Concession (LFC) journey to overseas destination as claimed by various employees. An order was passed u/s 201(1) / 201(1A) for short deduction of tax at source raising demand of Rs. 3.40 Lacs for short deduction of TDS. As per express provisions of Sec.10(5), the exemption could be granted only for journey to any place in ....

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....law or to evade any tax. Reference was made to the decision of Hon'ble Supreme Court in the case of Pricewaterhouse Coopers P. Ltd (25 Taxmann.com 400) holding that imposition of penalty was not warranted since the assessee had committed an inadvertent and bona fide error and not intended to conceal its income. However, Ld. CIT(A) rejected the same on the ground that this issue has ultimately been held against the assessee by Hon'ble Supreme Court (reported as 144 Taxmann.com 131) holding that the assessee was required to deduct tax at source on such reimbursements. The Ld. CIT(A) also did not condone the delay of 961 days in the appeal. Aggrieved, the assessee is in further appeal before us. 4. From the facts, it clearly emerges that th....