Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 759 - HC - Income TaxDeletion of penalty u/s 271A(2)(g) – late issuance of TDS Certificate - Reasonable cause for the failure - Held that:- Rule 31 of the Income Tax Rules, 1962 which prescribes that a certificate of deduction of tax at source by any person deducting the tax shall be in Form 16, came to be substituted on a number of occasions and under the old provision, the requisite certificate was required to be issued by the Revenue Department on an application by the deductor, but later on, that rule was substituted – the tribunal rightly found that in view of frequent amendments in rule 31 of the Income tax Rules, the assessee being a deductor was under a bona fide belief that the provisions have been followed - no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the provisions, if he proves that there was reasonable cause for the failure – here, the assessee has proved that there was a reasonable cause for the failure in complying with the provisions of section 272A (2)(g) of the Act - Once reasonable cause has been established by the assessee, no penalty u/s 271A(2)(g) of the Act could have been imposed on the assessee – the order of the Tribunal is upheld – Decided against revenue.
|