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2015 (10) TMI 71 - AT - Income TaxPenalty u/s 272A(2)(c) - failure to furnish return of income under section 206 within due date - CIT(A) deleted the penalty - Held that:- Penalty under section 272A(2)(c), has been levied on account of failure to furnish return of income under section 206 within due date. As culled out from the impugned orders, the assessee has not deposited the TDS amount in the Government account on the ground that it had no funds due to heavy losses. Due to non–deposit of TDS in the Government account, the assessee has already been subjected to heavy interest under section 201(1A) and further penalty under section 271C. The order under section 201(1) and 201(1A) has already been confirmed by the Tribunal. Once, already a penalty under section 271C has been levied for non–payment of TDS amount to the Government account, then the assessee had a bonafide reason that the return of income under section 206, giving particulars of TDS deposited and cheque number was not required to be filed, because the requisite details and particulars were not there with the assessee. Under these circumstances, Thus we agree with the findings and the conclusion of the Commissioner (Appeals) that there was a reasonable cause within the meaning of 273B for not imposing penalty. Penalty deleted by the learned Commissioner (Appeals) is upheld. - Decided against revenue. Penalty under section 272A(2)(g) - assessee’s main contention was that the TDS certificate could not have been issued to the tax deductee, since the tax deducted at source could not be paid to the Government account and, therefore, the assessee could not have filed the particulars which is required to be mentioned in the certificate - Held that:- aAssessee company was not supposed to issue incomplete certificate because no credit could have been received by the deductee. A false certificate could not have been issued. The other explanations were exactly the same as given in relation to the penalty proceedings under section 272A(2)(c). The learned Commissioner (Appeals) has correctly deleted the said penalty on the similar reason holding that the assessee was under bonafide belief that once the tax has not been deposited to the Government account then no certificate under section 203 could have been issued and such a bonafide belief falls within the ambit of section 273B, which envisages that no penalty is leviable if the assessee has bonafide reasons. - Decided against revenue.
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