TMI Blog2016 (6) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(Appeals) Patiala, dated 28.01.2016 for assessment year 2011-12 and 2012-13 challenging the cancellation of penalty under section 271CA of the Income Tax Act. 2. Briefly the facts of the case are that assessee is individual and is running the business of purchase and sale of old iron scrap. Though on purchase of this scrap, tax was being collected by the parties from whom the assessee deductor had made purchases, yet the assessee deductor on the sale of the scsrap, had not collected tax on further sales i.e. neither he collected tax nor deposited the same into government account as required under section 206C(1) of the Income Tax Act. The Assessing Officer on account of non deduction of TCS, levied the penalty vide separate ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f relevant assessment year proving that payment of due taxes have been made by the respective purchasers. It was also recorded that no demand on account of nondeduction of tax at source has been raised by the Assessing Officer and only interest has been charged. It is, therefore, clearly established that Revenue Department has not treated the assessee as assessee in default as far as TCS is concerned. The ld. CIT(Appeals) was, therefore, justified in following decision of Banglore Bench in the case of Wipro GE Medical Systems Ltd. in which the Tribunal has considered reasonable cause for not levying the penalty when sufficient compliance was made because of the tax demand had already been paid. Since taxes have already been paid by the buye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial burden is on the assessee to show that there exists reasonable cause which was the reason for the failure. There- after, the officer has to consider whether the explanation offered by the assessee or other person as regards the reason for failure, was on account of reasonable cause . 6. Considering the facts of the case in the light of the above discussion and findings recorded by ld. CIT(Appeals), I do not find any merit in the appeals of the Revenue. Both appeals of the Revenue are, accordingly, dismissed. 7. In the result, both appeals of the Revenue are dismissed . 6. The issue is covered in favour of the assessee by above order, therefore, following the above order, I dismiss the departmental appeals. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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