2016 (5) TMI 1424

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..... appeal filed by assessee against the order of learned CIT(A), Jammu, dated 17.09.2014 for Asst. Year:2009-10. 2. The assessee has taken six grounds of appeal, however, the crux of grounds of appeal is action of learned CIT(A), by which, he had upheld the penalty imposed by Assessing Officer u/s 271(1)(c) of the I. T. Act., for disallowances made on account of non deduction of TDS. 3. At the out .....

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..... aid during the year and the learned CIT(A) had enhanced the penalty by increasing penalty amount on payments for which payment was already made during the year. 4. Without prejudice it was submitted that various Tribunals and Courts has held that penalty imposed on disallowances made for non deduction of TDS is not sustainable and in this respect reliance was placed on following case laws: i) A .....

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..... order of Authorities Below. 6. We have heard the rival parties and have gone through the material placed on record. We find that it is an undisputed fact that penalty was imposed by the Assessing Officer for disallowance made u/s 40(a)(ia) of the Act for non deduction of tax on various payments. This fact is verifiable from the penalty order itself. We further find that the Hon'ble ITAT, Hyderab .....

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..... o deduct TDS which resulted in disallowance of expenditure. In our opinion, the mistake committed by the assessee was compensated by disallowing the expenditure. Further, the Revenue cannot penalise the assessee by levying penalty u/s 271(1) (c ) of the Act. In order to levy penalty u/s 271 (1) (c ) of the Act, there has to be concealment of particulars of income of the assessee or the assessee mu .....

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..... h is not sustainable and deletion of penalty by the CIT(A) is justified. We place reliance on the judgment of the HonT)le Supreme Court in the case of CIT Vs. Reliance Petro Products (P) Ltd. (322 ITR 158) (SC). Accordingly the ground raised by the revenue holds no merit. 6. In the result, the appeal of the Revenue stands dismissed." The facts and circumstances of the present appeal are pari mate .....

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