TMI Blog2015 (2) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... er those circumstances not to act as prescribed or determined by a case law. We are aware that ignorance of law is not an excuse but at the same time, it is not practical that every tax payer should be aware about the latest development of tax law; which are otherwise fast changing. We find that issue at hand was debatable at relevant point of time and assessee was prevented by a reasonable cause not to deduct TDS under the relevant provisions of Income Tax Act. In view of this, assessee is entitled for relief from penalty levied under the provision of 271C - Decided in favour of assessee - ITA. Nos. 2094 to 2097/Ahd/2011 - - - Dated:- 26-2-2015 - Shri Shailendra Kumar Yadav And Shri Anil Chaturvedi, JJ. By Assessee: Shri S. N. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial Bank in F.Y.2004-05. Subsequently the name of Industrial Development Bank of India Ltd was changed to IDBI Bank Ltd. (the appellant). Assessing Officer levied penalty of ₹ 47,491/- on the ground that the erstwhile IDBI Bank Ltd. (e-IBL) had failed to deduct tax at source on payments made to State Bank of India, Surat in connection with clearance of MICR cheques. The e-IBL was a member of MICR cheque clearing house at Surat, which was managed by SBI. The e-IBL was taken over by Industrial Development Bank of India Ltd., w.e.f 01.10.2004. Penalty has been levied on the successors for an alleged infringement by the predecessor bank. Stand of assessee has been that as per business practice, banks managing such MICR centres recovered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itsar Bench in ITA No.206(Asr)/2013 for A.Y. 2008-09 in case of Deputy Commissioner of Income Tax vs. Jammu Kashmir Bank Ltd., wherein assessee was granted relief on similar set of circumstances by observing as under: 8. We have heard the rival contentions and perused the facts of the case. We concur with the views of the ld. CIT(A) and the arguments made by the ld. counsel for the assessee, Mr. R.K.Gupta that the ld. CIT(A) in the present case has given a pertinent finding that MICR cheques are cleared through with the help of ultraviolet rays which scans the genuineness of cheques. No human intervention is required in MICR clearing of cheques by way of examining technical data, analyzing them and making them useful for subsequent us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause can be interpreted as applied to a person having an ordinary prudence. Therefore, the expression reasonable gives an impression that prima facie, if a person of average intelligence has acted and under those circumstances the said action was at that point of time not infringed the settled law then it can be reasonably held that the assessee was prevented by a reasonable cause under those circumstances not to act as prescribed or determined by a case law subsequently. Although ignorance of law is not an excuse but side by side it is also not expected that every tax payer should be aware about the latest development of tax law; which are otherwise fast changing. We, therefore, deem it justifiable to hold that in a situation when a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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