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2015 (7) TMI 1423 - ITAT LUCKNOWPenalty levied u/s 271C - order passed u/s 201(1A) charging interest on the delayed payment of tax - HELD THAT:- No order was passed under section 201(1) of the Act holding the assessee to be in default. The Assessing Officer has passed an order under section 201(1A) of the Act charging interest on the delayed payment of tax. We have also carefully perused the relevant provisions of section 271C of the Act and we find that the penalty under section 271C of the Act can only be levied where the assessee fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B or pay the whole or any part of the tax as required by or under (i) sub-section (2) of section 115-O; or (ii) the second proviso to section 194B. Hon'ble Apex Court in the case of Coca Cola Beverage P. Ltd. [2007 (8) TMI 12 - SUPREME COURT] and Jagran Prakashan Ltd [2012 (5) TMI 488 - ALLAHABAD HIGH COURT] and also various orders of the Tribunal, in which it has been held that wherein TDS was paid by the assessee or required tax was paid by the deductee, the assessee should not held to be in default. Only interest on delayed payment under section 201(1A) of the Act can be charged. In the light of these decisions where the assessee has made payment of TDS though late, he cannot be held to be in default and there is no question of levy of penalty under section 271C - Decided against revenue.
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