TMI Blog2015 (10) TMI 1588X X X X Extracts X X X X X X X X Extracts X X X X ..... 271C of the Act are not attracted. We accordingly direct its deletion. See case of Prime Co-Op. Bank Ltd. (2015 (10) TMI 1744 - ITAT AHMEDABAD) - Decided in favour of assessee. - ITA Nos. 2291 to 2294 /AHD/2011 - - - Dated:- 22-5-2015 - Rajpal Yadav, JM And Anil Chaturvedi, AM,JJ. For the Appellant : None For the Respondent : Shri Nimesh Yadav, Sr DR ORDER Per: Bench: 1. These 4 appeals are filed by the Assessee against the order of CIT(A)-I, Surat dated 30.06.2011 for A.Ys. 2003-04 to 2006-07. 2. On the date of hearing i.e. on 20.05.2015 none appeared on behalf of Assessee though from the records, it is seen that the notice of hearing was served to the Assessee. We therefore proceed to decide the issue ex parte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has not been able to substantiate the circumstances beyond its control which prevented it from complying with the provisions of the Act. He therefore vide order dated 09.09.2010 levied a penalty of ₹ 7,287/- u/s. 271C of the Act. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A) who dismissed the appeal of the Assessee by holding as under:- The arguments of the A.O as well as appellant have been considered. There is considerable force in the arguments of the A.O. Having regard to the strong arguments put forth by the A.O and the decision of the Hon ble ITAT, B Bench, Ahmedabad, the penalty imposed u/s. 271(1)(C) of the I.T. Act is confirmed. 6. Aggrieved by the order of CIT(A), Assessee is now in appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng penalty u/s. 271C, the concerned officer is required to find out that even if there was any failure to deduct tax at source, the same was without reasonable cause. The initial burden is on the Assessee to shown that there exists reasonable cause which was the reason for the failure, thereafter the officer has to consider whether the explanation offered by the Assessee was on account of reasonable cause. It has further held that reasonable cause is that which would mean an honest belief founded upon reasonable grounds of the existence of a state of circumstances, which assuming them to be true, would reasonably lead ordinary, prudent and cautious man, placed in the position of the persons concerned, to come to the conclusion that the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore the provisions for penalty u/s. 271C of the Act are not attracted. We accordingly direct its deletion. 13. In the present case, we find that in the submissions before ld. CIT(A), it was contended that Assessee was under the belief that no TDS was deductible on the MICR charges paid by Assessee, Assessee considering the amount of interest levied u/s. 201(1) 201(1A) took a decision of not filing appeal against its levy, and the payee, namely SBI, has already paid the tax on the MICR charges collected by it. The aforesaid submissions of Assessee made before ld. CIT(A) have not been controverted by ld. D.R. We further find that the issue raised in the present appeals are identical to the case of Prime Co-Op. Bank Ltd. (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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