Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 1252 - AT - Income TaxPenalty u/s 271C - failure to collect TCS - reasonable cause - "assessee in default” in respect of sale only within the meaning of section 201(1) and has not treated the assessee as “assessee in default” for collection of TCS in respect of sale - Held that:- The assessee has satisfied the Assessing Officer that tax have been paid by the deducted / assessee in respect of sale of ₹ 12,40,93,199. It is only in respect of balance amount of sale of ₹ 54,83,410, the assessee could not satisfy the Assessing Officer and the assessee has been treated as “assessee in default” under section 201(1) of the Act. In these circumstances, we agree with the learned Commissioner (Appeals) that once the assessee has been held to be not an assessee in default with reference to sale amount of ₹ 12,40,93,199, there is no justification of levying penalty in respect of sale amounting to ₹ 12,40,93,199 and only the levy of penalty in respect of an amount of ₹ 54,83,410 remains. The assessee has submitted the extant legal opinion of an Advocate of Hon’ble Supreme Court who had opined that the assessee was not liable to collect the TCS on the items it dealt with. Similarly, the assessee has referred to the correspondence with the Assessing Officer seeking clarification from time to time. Hence, it can be reasonably construed that the assessee’s case falls under the ambit of section 273B of the Act which is attributable for non–collection of TCS by the assessee due to his bonafide belief that the cut to size planks of timber logs are not liable to TCS. Furthermore, we find that the decision referred to by the learned Counsel for assessee in support of his case are germane and support the case of the assessee - Decided in favour of assessee
|