Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

The I.T.O, New Delhi Versus M/s Cincom Systems India (P) Ltd.

Penalty levied u/s 271C - non TDS u/s 194H on commission/discount/handling charges paid to sub agents - Held that:- . CIT(A) considered the submissions, reasons and the explanation of the assessee and then noted that the sale in respect of which commission was payable did not materialize and the commissions was also written back. The ld. CIT(A) also observed this fact that the assessee has already paid the TDS and interest thereon and respective party accounts were debited by the said amounts as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ri Ved Jain, CA For the Respondent : Ms. Rakhi Vimal, Sr. DR ORDER Per Chandra Mohan Garg, Judicial Member This appeal filed by the revenue is directed against the order of the CIT(A)-XXX, Delhi, dated 20/11/2009 for AY 2001-02. 2. The grounds raised by the Revenue read as under: On the facts and circumstances of the case as well as the in law, the ld. CIT(A) has erred in : 1. deleting the penalty levied u/s 271C of I. T. Act, 1961 amounting to ₹ 27,78,033/- being 100% of tax not deducted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ground for such relief. 3. holding that the imposition of penalty u/s 271C is not justified as it would amount to penalizing the assessee for an omission which did not cause any loss of revenue. 3. We have heard the rival submissions and have perused the relevant material on record before us, inter alia, quantum assessment order and first appellate order, penalty order and the impugned order in this appeal paper book and the assessee spread over 190 pages. The ld. DR supporting the action of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

justified basis. The ld. DR has drawn our attention para 3 at page 3 of the penalty order and submitted that while the assessee is crediting the respective account of sub agents, then it was obligatory on the part of the assessee to deduct TDS and deposit the same to the exchequer, otherwise the assessee should have made provisions of expenses instead of crediting the same to the accounts of the subagents/ bookers. The ld. CIT-DR contended that the ignorance of legal provisions are not an excus .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ee had paid short fall of TDS and interest thereon thus penalty cannot be imposed merely on technical issues. The ld. AR further submitted that the assessee was under bonafide belief that TDS was to be made at the time of payment of commission and not at the time of booking and crediting the expenditure to the respective recipients accounts. The ld. AR also pointed out the A.Y 2001-02 was the first year of TDS provisions and the assessee was a bit confused hence some bonafide omissions happened .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mises of the assessee company and it was found that the assessee company had shown expenditure of ₹ 9.30 crores as agency commission for financial years 01-02 but in its TDS return the assessee company was showing commission payment amounting to ₹ 26,37,000/- only on which TDS u/s. 194H of the IT Act was made. In respect of the remaining commission due to the agents no TDS was made. The AO held that TDS should have been deducted on the total expenditure of ₹ 9.30 crores booked .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of booking/crediting the expenditure. He has given the following reasons to support his plea of bonafide belief (i) That it was the first year of the inactment of the relevant provision and the assessee was a bit confused, (ii) That it was a policy of the company in the past that TDS was deducted when payment of commission was made because normally there were huge bad debts in sales and it was felt that if TDS is made at the time of crediting the commission expenses and TDS certificates are al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

was pointed out to the assessee during the survey the assessee made the payment of TDS as well as interest and it is only the penalty which is being contested by the appellant. I find that the above mentioned facts prove the bonafide credentials of the appellant. In fact, at this point of time, it stands established that the sale in respect of which commission was payable did not materialize and the commission was also written back. There cannot be any tax liability in respect of such commission .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stances of the case and the subsequent events, I am of the view that imposition of penalty u/s.271C is not justified in this case as it will amount to penalizing the assessee for an omission which did not cause any loss of revenue. I therefore cancel the penalty. 6. On logical analysis of the operative part of the first appellate order, we observe that the ld. CIT(A) considered the submissions, reasons and the explanation of the assessee and then noted that the sale in respect of which commissio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version