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2022 (2) TMI 238 - HC - Income TaxDefault u/s 201 (1) - short deduction of TDS - penalty u/s 271C - whether ITAT was justified in penalizing the appellant in default U/s 271C of the IT Act in absence of contravention of Section 192 ? - As concluded by the CIT(A) that the penalty demand treating the Appellant as Assessee in default under Section 201 (1) to the extent of short deduction of TDS is deleted as employees had paid their taxes directly through self assessment and had filed details of their income, therefore, no further tax was payable - HELD THAT:- Once it has been categorically held by the CIT (A) that there is no short deduction of TDS, the question of categorising the Appellant as Assessee-in-default for the purposes of Section 201 (1) of the IT Act did not arise. There was, therefore, no occasion for imposition of the penalty under Section 271C Department has been unable to point out how the above orders of ITAT upholding the penalty levied by the AO on the Appellant are sustainable in law. Consequently the questions framed by this Court are all answered in favour of the Appellant Assessee and against the Department - The appeal is allowed in the above terms.
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