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2019 (2) TMI 1761 - AT - Income TaxPenalty levied u/s 271C - penalty was not passed within the time limit laid down u/s 275(1)(c) - HELD THAT:- We hold that in the instant case the 6 months period was to be calculated from the date of the notice issued by the Joint Commissioner who was competent to levy the penalty u/s 271C and, therefore, penalty order was passed well within time. Non deducting tax at source - HELD THAT:- As per section 194A, the person, who is responsible for paying to a resident any income by way of interest other than ‘interest on securities’, is required to deduct tax thereon at the rates in force. Tax is to be deducted either at the time of payment of interest in cash or by issue of cheque or draft or any other mode or credit of it to any account, whichever is earlier. As per section 194H any person, who is responsible for paying, to a resident, any income by way of commission or brokerage, shall, deduct income tax thereon. It will be deducted at the time of credit of such income to the account of the payee or to any account, whether called suspense account or by any other name or at the time of payment of such income in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. As per section 195 any person responsible for paying to a non-resident, not being a company or to a foreign company, any interest (not being interest referred to in section 194LB or section 194LC or section 194LD) or any sum chargeable under this Act (other than salary) shall, at the time of credit of such income to the account of the payee or at the time of payment thereon in cash or by issue of a cheque or draft or by any other mode, whichever is earlier deduct income tax thereon at the rates in force. Thus the TDS provisions as mentioned above are applicable in the present case. Whether, there was reasonable ground on the part of the assessee in not deducting tax at source is another matter. Assessee failure to submit the details regarding income tax returns filed by the payees to whom it had made various payments - HELD THAT:- We are of the considered view that the ratio laid down in Hindustan Coca Cola Beverages (P.) Ltd. [2007 (8) TMI 12 - SUPREME COURT] has relevance in the instant case. Therefore, we restore the matter in respect of the above grounds of appeal to the file of the JCIT to find out whether the deductee, recipient of income, has already paid taxes on amount received from the deductor. We also direct the assessee to file the relevant documents/evidence before the AO. Needless to say, the AO would give reasonable opportunity of being heard to the assessee before finalizing the penalty order. Thus grounds of appeal are allowed for statistical purposes.
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