TMI Blog2017 (10) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in default by passing order u/s 201(1) of the Act. So, when AO has not recorded his satisfaction for initiation of the penalty u/s 271(1)(c) in the order required to be passed u/s 201(1) of the Act, the penalty order is not sustainable. - Decided in favour of assessee. - ITA No.6596/Del./2015 And ITA No.6597/Del./2015 - - - Dated:- 21-9-2017 - SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASSESSEE : Shri Anil Jain, CA For The REVENUE : Shri Atiq Ahmad, Senior DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Since common question of law and facts is involved in the aforesaid appeals filed by the assessee against a single order dated 01.10.2015 passed by the ld. CIT (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n both the aforesaid appeals are : on the basis of assessment completed under section 143 (3) of the Income-tax Act, 1961 (for short the Act ) for Assessment Years 2008-09 and 2009-10, Assessing Officer noticed that the TDS was not deducted by the assessee company at source amounting to ₹ 72,959/- and ₹ 49,996/- respectively, which the assessee was required to disclose. AO, after issuing the notice u/s 271(1)(c) of the Act read with section 274 (1) initiated the penalty proceedings. Assessee submitted that immediately after the objections raised by the tax auditor, assessee company has deducted TDS on the above payment and deposited the same. AO, being dis-satisfied with the explanation, proceeded to impose the penalty to the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ately after pointing out by the tax auditors, TDS was deposited by the assessee company out of its own pocket without collecting it from the deductee. Assessee company has even deposited the TDS even before deduction made by the revenue authorities. 8. So, we are of the considered view that it was a reasonable cause for the assessee company not to deposit the TDS within time. Furthermore, penalty order u/s 271(1)(c) of the Act has been passed without declaring the assessee in default by passing order u/s 201(1) of the Act. So, when AO has not recorded his satisfaction for initiation of the penalty u/s 271(1)(c) in the order required to be passed u/s 201(1) of the Act, the penalty order is not sustainable. 9. Coordinate Bench of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
