Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 1709 - AT - Income TaxPenalty u/s 271CA - default in collecting tax at source on further sales in compliance with the provisions of section 206C(1) - HELD THAT:- In identical set of facts in the own case of the assessee, this Tribunal has upheld the order of the CIT(Appeals) deleting the penalty levied u/s 271CA wherein held "Reasonable cause" as applied to human action is that which would constrain a person of average intelligence and ordinary prudence. It can be described as a probable cause. It means an honest belief founded upon reasonable grounds, of the existence of a state of circumstances, which assuming them to be true, would reasonably lead any ordinarily prudent and cautious man, placed in the position of the person concerned, to come to the conclusion that same was the right thing to do. The cause shown has to be considered and only if it is found to be frivolous, without substance or foundation, the prescribed consequences follow. In view of the same we agree with the Ld.CIT(A) that the assessee had reasonable cause for not collecting tax at source ,the absence of which is essential for levying penalty as held by the Delhi High Court in the case of woodward governor [2001 (4) TMI 34 - DELHI HIGH COURT]. We therefore uphold the order of the Ld. CIT(Appeals) deleting the levy of penalty under section 271CA of the Act. - Decided in favour of assessee.
|