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2021 (4) TMI 28 - HC - Income TaxPenalty u/s 271C (1) (a) - delayed deposit of the TDS deducted by the assessee - HELD THAT:- We are pursuaded that the questions falling for consideration in the instant tax appeals are no more remain res integra and covered by the Full Bench judgment in Lakshadweep Development Corporation Ltd [2019 (3) TMI 333 - KERALA HIGH COURT] in favour of the assessee as held once the burden is discharged by the person/assessee as to the existence of good and sufficient reason for not complying with the stipulation under Section 271C, it is for the authorities to consider with proper application of mind, whether the penalty is to be waived or reduced, based on the facts and circumstances. Section 271C of the Income Tax Act is quite categoric. Its scope and extent of application is discernible from the provision itself, in unambiguous terms. When the non-deduction of the whole or any part of the tax, as required by or under the various instances/provisions of Chapter XVII-B would invite penalty under Clause 271C(1)(a); only to a limited extent, involving sub-section (2) of Sec.115-O(coming under Chapter XIID) or covered by the 'second proviso' to Section 194B (coming under Chapter XVIIB) alone would constitute an instance where penalty can be imposed in terms of Section 271C(1)(b) of the Act. Since there is no obscurity in the above provision, it is not for the Court to read something more into it, contrary to the intent and legislative wisdom, which stands to be a forbidden field for the Court. It is settled law that the rule of 'strict interpretation' is the relevant one in so far as the fiscal statute is concerned. Hence levy of penalty, for delayed deposit of TDS is not attracted to the case on hand. - Decided in favour of assessee.
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