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2018 (3) TMI 432 - AT - Income TaxLevy of penalty u/s 271C - non deduction of tds on payment of lease rent to Noida Authority u/s 194I - Held that:- A.O. in the order u/s 201(1) / 201(1A) specifically noted the explanation of assessee in which it was submitted by assessee that assessee requested the Noida Authority to clarify their position whether their income is exempt, but, no reply have been received from them. Prior to it, the Writ Petition of Noida Authority was dismissed by Hon’ble Allahabad High Court. A.O. ultimately, rejected the contention of assessee and passed the order for recovery of the short deduction with interest. The assessee in the penalty proceedings claimed before A.O. that income of the Noida Authority exempt under section 10(20) of the I.T. Act, which fact was also has not proved by the assessee because it was incorrect. Therefore, the assessee had been negligent in not deducting TDS on lease rent paid to Noida Authority without any justification. Since assessee failed to prove its bonafide through any relevant and cogent evidence, therefore, assessee cannot take benefit of Section 273B of the I.T. Act as the assessee has failed to prove any reasonable cause for failure to comply with provisions of law. No interference is called for in the matter. Assessee submission that since the assessee moved an application under section 154 before Ld. CIT(A) for rectification of the impugned order, therefore, appeals of the assessee may be kept in abeyance, this issue is not arising out of the orders of the authorities below and even the assessee has not moved any proper application for admission of additional ground before the Tribunal that assessment order is time barred, therefore, such plea of the assessee cannot be entertained at this stage. The request of the assessee for keeping the appeals in abeyance is accordingly rejected. - Decided against assessee.
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