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2019 (3) TMI 1252 - ITAT VISAKHAPATNAMLevy of penalty u/s 271C - TDS default u/s 194C - deduction of TDS at the year end - assessee is consistently following the practice of arriving the TDS liability at the end of the year since, the material supplies are involved in the contract and material supply would be more than the payments to the contractor during the interim period thus the assessee contended that the assessee should not be treated as offender for non-deduction of tax at source - default u/s 201(1) - HELD THAT:- Assessee was supplying the material to the contractor throughout the year and at the end of the year, after receiving the bills, the assessee is making the payments to the contractor duly deducting the tax at source and remitting to the Govt. account and no default is committed. From verification of the account copy of M/s S.V.Constructions, we observe that the assessee has continuously supplied and material and there was no payment made by the assessee to the contractor till 31.12.2013. However, on 31.12.2013, the assessee passed a journal entry for a sum of ₹ 3,21,77,600/- against which the material supplied was ₹ 5,96,72,210/-. Since the assessee had duly deducted the tax at source u/s 194C as at the end of the year and remitted to the Govt. account, the assessee’s case is squarely covered by the decision in the case of CIT-XVIII, Delhi Vs. Bank of Nova Scotia [2016 (1) TMI 583 - SUPREME COURT]. In the instant case, as observed earlier, there is no doubt that the assessee has duly deducted the TDS and remitted to Govt. account. - Decided against revenue
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