TMI Blog2001 (11) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... gation to deposit the amount of tax so collected to the credit of Central Government within 7 days from the date of collection. However, as there was a default on the part of the assessee to comply with the said requirements of s. 206C(3), the AO initiated penalty proceedings by issuing a notice on 23rd March, 1998, requiring the assessee to show-cause as to why a penalty under s. 221(1) should not be levied for the said default. In response to the said notice, the assessee neither appeared personally or through authorised representative before the AO on the stipulated date nor furnished any written explanation. The AO therefore, presumed that the assessee has no explanation to offer for the said default committed by it and proceeded to lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. Referring to the provisions of ss. 201 and 206, the learned Departmental Representative has also contended that although there are no provisions in s. 206C parallel to the specific provisions of s. 201 treating the person committing the default to pay the tax amount as deemed to be an assessee in default, the provisions of s. 201 being clarificatory in nature, the same analogy can logically be applied to treat the assessee-firm in the present case as an assessee deemed to be in default for the purpose of levy of penalty under s. 221. After considering all the relevant provisions of law carefully and looking into the circulars issued by the CBDT clarifying the position in this regard, we find it difficult to agree with the contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an assessee in default or deemed to be in default in payment of tax are specifically provided in the relevant sections, viz., s. 140A, ss. 201, 218, s. 220(1), etc., but the law makers have omitted to enact such provision for the default on the part of a person to comply with the requirements of s. 206C. The reason for this conscious omission appears to be that there was no legislative intention to levy penalty under s. 221(1) for such default. 6. It is thus clear that there is no specific provision in the Act to treat/consider the person committing default in complying with the provisions of s. 206C to be an assessee in default or deemed to be in default in payment of tax, as envisaged in s. 221(1) and this being so, we are of the opin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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