TMI Blog2021 (9) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A). As argued that the assessee has demonstrated bonafide reason for non-deduction of tax, therefore, authorities below ought not to have imposed the penalty in terms of section 273B - assessee has also placed reliance on Hindustan Coca Cola Beverages Pvt.Ltd. [ 2007 (8) TMI 12 - SUPREME COURT] to buttress the contention where the assessee has deposited tax and interest thereon and disclosed the income in the return of income, no disallowance is called for - as further stated that Haryana Ware Housing Corporation has also disclosed this income and due taxes have already been paid. As coupled with the fact that due taxes alongwith interest thereon, have been deposited in the Government account. This fact is not controverted by the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out on 04.02.2010 at the premises of the assessee. Thereafter, order u/s 201(1)/201(1A) of the Act was passed on 24.02.2010 declaring assessee s in default for non-deduction of tax at source on payment of rent. The Assessing Officer, thereafter, initiated the penalty proceedings u/s 271C of the Act, by issuing show cause notice dated 19.10.2011. In response thereto, the Authorized Representative of the assessee appeared and filed its reply. However, the explanation of the assessee was not found acceptable by the Assessing Officer and he proceeded to impose penalty of ₹ 6,32,267/- u/s 271C of the Act. 4. Aggrieved against this, the assessee preferred the present appeal before Ld.CIT(A) who also sustained the penalty and dismiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he authorities below. Ld. Sr. DR submitted that only explanation offered by the assessee is with regard to payment made to the owner of the spaces in the nature of advance for booking of space. The assessee was required to deduct tax on payment of ₹ 27,90,240/- as made to M/s Haryana Warehousing Corporation. Hence, the Assessing Officer has rightly held that the assessee in default and proceeded to impose penalty u/s 271C of the Act. The entire story as now stated by Ld. Counsel for the assessee is after thought to avoid the rigours of section 271C of the Act. The assessee has grossly failed to prove its bonafide for non-deduction of tax on source on the payment made which was essentially advance rent. 8. We have heard contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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