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2020 (4) TMI 16 - AT - Income TaxPenalty u/s 271C - delay in deposit of the TDS in the Government account - HELD THAT:- Penalty under section 271C of the Act can only be levied where the assessee fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B, or pay the whole or any part of the tax as required by or under (i) sub-section (2) of section 115- O, or (ii) the second proviso to section 194B. In ‘Coca Cola Beverage P. Ltd. vs. CIT [2007 (8) TMI 12 - SUPREME COURT] and in ‘Jagran Prakashan Ltd. v. Deputy Commissioner of Income-tax (TDS)’[2012 (5) TMI 488 - ALLAHABAD HIGH COURT ] and also various orders of the Tribunal, it has been held that where TDS was paid by the assessee or the required tax was paid by the deductee, the assessee should not be held to be in default. Only interest on delayed payment under section 201(1A) of the Act can be charged. In the light of these decisions, where the assessee has made payment of TDS though late, he cannot be held to be in default and so, there is no question of levy of penalty under section 271C of the Act - We allow the appeal of the assessee and cancel the penalty levied under section 271C - Decided in favour of assessee.
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