2012 (12) TMI 1157 - AT - Income Tax

Summary

Issues Involved: Appeal against penalty u/s 271CA for failure to collect TCS u/s 206C(IC) of the Income-tax Act, 1961.

Summary:
The appellant had given Parking Lots on lease in Chandigarh during the Financial Year 2007-08, with lessees responsible for tax payment on their income. Appellant believed no obligation for tax deduction at source until noticing TCS provisions, then collected and deposited tax with interest. The appeal contested the penalty of Rs. 6,71,424 levied by the CIT(A) for failure to collect TCS. The appellant argued bonafide belief due to lessees' tax responsibility and subsequent compliance. The appellant's case was considered u/s 273B, allowing non-levy of penalty for reasonable cause. The appellant's evidence of payment supported the claim. The Tribunal found in favor of the appellant, setting aside the penalty imposed by the CIT(A). The appeal was allowed, and the order pronounced on 13th Dec., 2012.