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2016 (6) TMI 421 - ITAT AMRITSAR

2016 (6) TMI 421 - ITAT AMRITSAR - TMI - Levy of penalty u/s 271C - non deduction of tds - assessee treated as 'assessee in default' - Held that:- We find that it is an undisputed fact that order u/s 201(1A) was passed vide order dated 07.03.2011 and no order u/s 201(1) has been passed as the order pointed out by learned DR was passed u/s 201(1A) and not u/s 201(1). The learned DR was not able to point out any order passed u/s 201(1) of the Act. The amended provisions of section 201 of the act a .....

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to be assessee in default. The Honíble Chandigarh Bench of ITAT, in [2016 (5) TMI 69 - ITAT CHANDIGARH] under similar circumstances has deleted the penalty u/s 271 (1)(c) wherein held the assessee being not in default in respect of the amount of tax itself, there cannot be any levy of penalty u/s 271C, more so, where there was a reasonable cause for not deducting the TDS on the payment made by the assessee - Decided in favour of assessee. - I.T.A Nos. 51, 52 & 53 (Asr)/2016 - Dated:- 4-5-2016 - .....

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solidated order is being passed. 3. The only grievance involved is the action of learned CIT(A) by which he had confirmed the penalty imposed by Assessing Officer u/s 271(C) of the Act. At the time of hearing the learned AR invited our attention to an additional ground of appeal which has been taken in all the appeals and which read as under: That on the facts and circumstances of the case, penalty imposed u/s 271C of the Act is illegal and bad in law since assessee has not been held assessee in .....

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ner of Income Tax 229 ITR 383, it can be raised at any stage. 5. The learned DR did not object to the admission of additional ground raised in the appeals. We find that the ground taken by assessee is a legal ground and therefore we admitted it for adjudication. 6. Inviting our attention to the facts of the case the learned AR submitted that assessee had made certain payments on account of interest to non banking, financial companies and in view of its bonafide belief that it was not required to .....

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ments were made had declared such income in their income tax returns. He submitted that admittedly the payees of interest had declared their income in their tax returns and this plea was taken before the Assessing Officer and learned CIT(A) but it was not accepted by them. It was submitted that learned CIT(A) had not accepted the plea of assessee holding that the provisions were amended only on 1.07.2012 and the cases involved were prior to 1.07.2012. Continuing his arguments the learned AR invi .....

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(1) of the Act. 7. The learned DR, on the other hand submitted that Assessing Officer had duly passed the order u/s 201(1) and in this respect he invited our attention to the order dated 07.03.2011 and took us to the last para of the order and therefore, he submitted that the penalties has been rightly upheld. 8. The learned AR in his rejoinder submitted that this order was passed u/s 201(1A) and not u/s 201(1) and therefore, no penalty was imposable. 9. We have heard the rival parties and have .....

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had taken such income in their income tax returns and had paid taxes on such income the assessee cannot be said to be an assessee in default. The authorities below has not disputed this fact that payees of incomes had declared the payments in their income tax return and that is why order u/s 201(1) has not been passed and if the order u/s 201(1) has not been passed the assessee cannot be said to be assessee in default. The Hon ble Chandigarh Bench of ITAT, in ITA Nos. 38 to 41 for Asst. Years 2 .....

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