TaxTMI 
TaxTMI 
2026 (9) TMI 1068
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....assessee is against the confirmation of penalties by the ld. CIT(A) of Rs. 27,600/- and Rs. 2,508/-, aggregating to Rs. 30,108/- as levied by Assessing Officer (In short, 'the AO') u/s 271C and 271CA of the Income-tax Act, 1961 (In short, 'the Act') for alleged default u/s 194I and 206C(1) of the Act respectively without appreciating the fact there was a reasonable cause for the non-deduction/non-collection of tax, because the assessee acted under a bona fide belief that section 196 of the Act exempted the payment to Govt. Corporations from TDS and therefore, the same is reasonable cause within the meaning of section 273B of the Act. 3. The facts of the case in brief are that an order u/s 201(1)/206C(7) of the Act was passed by ACIT(TDS)....
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....e appellate proceedings, the ld. CIT(A) confirmed the order of AO by holding that penalty imposing for non-deduction of tax u/s 194I of the Act and collecting of TCS u/s 206C(1) of the Act were rightly levied. 5. We have heard rival submissions and perused the materials available on record. We find that the assessee is engaged in the business of construction and development of real estate. We note that the assessee has not deducted tax u/s 194I of the Act on the payment made to M/s Bengal Chemical and Pharmaceutical Ltd. qua rent in respect of a portion of land at Kolkata of Rs. 1,38,000/-. The assessee also defaulted in collecting tax at source u/s 206C(1) of the Act. The total additions made by the AO u/s 40(a)(ia) of the Act in the as....
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....of India. For the sake of ready reference, Article 12 defines 'Other authorities' as follows: "What is, and what is not a "State" has been the subject matter of rich case law under article 12 From the numerous decisions on the subject, a judgment of the Hon'ble Andhra Pradesh High Court has culled out certain propositions, B. Hassan Ali Khan v. Director of Higher Education, Andhra Pradesh, (1987) 4 Reports 198 (AP). The judgment says that the essential tests to determine whether a particular institution is "other authority" within the meaning of article 12 are substantial financial aid, control by the Government, performance of public functions and entrustment of governmental activities. All of these are not essential, and, in ....
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....eople of India out of the Fundamental Rights guaranteed to them. 3) The test for determining as to when a corporation can be said to be an instrumentality or agency of Government may be culled out from the judgment in the International Airport Authority's case. They are not conclusive or clinching, but they are merely indicative indicia which have to be used with care and caution, because while stressing the necessity of a wide meaning to be placed on the expression "other authorities", it must be realized that it should not be stretched so far as to bring in every autonomous body which has some nexus with the Government with the sweep of the expression. A wide enlargement of the meaning must be tempered by a wise limitation. T....
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....ion 617 of the Companies Act, 1956 is a State/Government with reference to Article 12. It was held that the Government has extensive control over the working of the company. Thus, the Apex Court held it as State Government under Article 12. Similar decision had been given by the Hon'ble Apex Court in the case of Som Prakash Rekhi Union of India [1981] 51 COMP CASE 71 (SC), dated 13.11.1980, in which Bharat Petroleum Corporation registered u/s 617 of the Companies Act, 1956, was regarded as an authority or State/Government under Article 12. 9. We also perused the provisions of section 273B of the Act, which deals with the case where penalty is not to be imposed if there exist a reasonable cause for the said failure. Since the present ....