TMI Blog2020 (4) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Tribunal, it has been held that where TDS was paid by the assessee or the required tax was paid by the deductee, the assessee should not be held to be in default. Only interest on delayed payment under section 201(1A) of the Act can be charged. In the light of these decisions, where the assessee has made payment of TDS though late, he cannot be held to be in default and so, there is no question of levy of penalty under section 271C of the Act - We allow the appeal of the assessee and cancel the penalty levied under section 271C - Decided in favour of assessee. - ITA No.16/LKW/2018 - - - Dated:- 7-1-2020 - Shri. A. D. Jain, Vice President And Shri T. S. Kapoor, Accountant Member For the Appellant : Shri J.J. Mehrotra, C.A. and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecall the said order dated 31.10.2018, with the submission that at the time of hearing of the appeal, the Authorized Representative of the assessee had been under a bona fide belief that it was the quantum appeal of the assessee in ITA no. 512/LKW/2018 against the order passed by the CIT(A)-I, Lucknow, on 26.04.2018, which was fixed for hearing, and not the penalty appeal in ITA no.16/LKW/2018, as the original notice fixing the appeal on the date of hearing was misplaced, and consequently, the Authorized Representative argued the matter in respect of the said quantum appeal in ITA No.512/LKW/2018, relating to the order dated 26/4/2018, passed by the CIT(A)-I, Lucknow against the order of the Assessing Officer under section 143(3) for A.Y. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng through a very bad phase and the Chairman of the group, alongwith two senior Directors, were confined to jail pursuant to the direction of the Hon'ble Apex Court, since March, 2014, which had disrupted the regular business activities of the group and hence caused the delay in the deposit of the tax. 5. The ld. CIT(A) rejected the contention of the assessee, observing that the TDS was deducted by the assessee during the financial year 2014-15 and it was deposited on 28.10.2016, i.e, after a delay of almost two years. He, accordingly, held the imposition of penalty under section 271C of the Act, to be justified. However, the ld. CIT(A) directed the Assessing Officer to suitably modify the amount of penalty imposed, as per the defaul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the assessee, was due to the fact that the parent group of the assessee society was passing through a very bad phase and the Chairman of the group, alongwith two senior Directors, were confined to jail pursuant to the direction of the Hon'ble Apex Court, since March, 2014, which had disrupted the regular business activities of the group and hence caused the delay in the deposit of the tax. 9. We have carefully perused the relevant provisions of section 271C of the Act and we find that penalty under section 271C of the Act can only be levied where the assessee fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B, or pay the whole or any part of the tax as required by or under ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ochu Corporation, reported in 268 ITR 172 (Del) and in the case of CIT Vs. Mitsui Company Ltd. reported in 272 ITR 545. Respectfully following the aforesaid judgments of Hon'ble Delhi High Court and the decision of the ITAT, Delhi in the case of Television Eighteen India Ltd., we allow the assessee's appeal and cancel the penalty as levied u/s 271-C. 12. No decision contrary to the above case laws cited on behalf of the assessee has cited before us. Therefore, respectfully following the above decisions, we allow the appeal of the assessee and cancel the penalty levied under section 271C of the Act. 13. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 07/01/2020. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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