Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 239 - HC - Income TaxPenalty - TDS - Wrong deduction of TDS - Penalty - Reasonable Cause - Held that: - Since the assessee was deducting under the advice of the Chartered Accountant - That there is a reasonable cause for such belief, therefore, the penalty is not exigible - Even otherwise for imposition of penalty, the general presumption is that definite finding about concealment is necessary - The Hon'ble Punjab & Haryana High Court in the case of Hari Gopal Singh vs CIT (2002 -TMI - 12268 - PUNJAB AND HARYANA High Court) clearly held that penalty cannot be levied when income has been estimated - Acordingly appeals of the assessee are allowed The assessee had been deducting tax from the payments payable to CFA under Section 194C on a consolidated basis towards different heads. There is no reason to disbelieve the assessee that the same was being done by its employees on misconceived professional advice given by the Chartered Accountants. Since the payment were to be deducted from CFA no benefit was to be derived by the assessee for making lesser or inaccurate deductions. No malafide intention of any kind can be attributed to the assessee for deducting tax under one provision of law than the other. - It can not be said that the assessee has failed to comply with the provision of Section 194I and 194J of the Act without reasonable cause. - Decided in favor of assessee.
|