Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 904 - AT - Income TaxPenalty proceedings u/s 271C - non deduction uf tds u/s 194J on the payment made to hospitals nursing homes - Held that:- While deleting the penalty the CIT(A) has mentioned that the penalty u/s 271C was not leviable in the case of assessee for the reasons that the assessee did not deduct tax following “favourable decisions” available to them at “that time”. According to which no tax was deductible by them for being TPA u/s 195J. Therefore, the CIT(A) while passing the impugned order has held that “this being a reasonable cause itself, in view of provisions of sec.273B” the penalty levied u/s 271C of the Act, upon the assessee was deleted. The ld. CIT(A) has no where mentioned what were those favourable decisions at that time available to the assessee according to which the assessee was not liable to deduct tax being TPA u/s 194J of the Act and this particular stand taken by CIT(A) is the basis for reaching to the conclusion. However, the orders passed by the ld. CIT(A) lacks mentioning or discussion of ‘any such favourable decisions’, while reaching to a conclusion regarding deletion of penalty. Therefore, in our considered view, the ld. CIT(A) has reached to a conclusion without mentioning its basis. Hence, the order of ld. CIT(A) is nonspeaking to that extent. Considering the facts of the present case, in our considered view the present appeal is to be remanded back to the file of the CIT(A) with a direction to pass speaking order, while mentioning the basis or the details of ‘favourable decisions’ which were available at ‘that time’ before the assessee, according to which no tax was deductible. Needless to mention that the ld. CIT(A) would give a fresh opportunity of hearing to both parties before passing a fresh order in accordance with law. - Decided in favour of revenue for statistical purposes.
|