sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
From the Courts »
 Assistant Commissioner Assessment Iv Trade Tax, Varanasi & Ors. Vs M/s Auto Centre
 Ansal Housing And Construction Ltd. vs Assistant Commissioner Of Income Tax & Anr.
 40 LPA-Opening Financial Controller
 30 LPA-Opening Senior Manager Finance & Accounts,
 Indus Best Hospitality & Realtors Pvt. Ltd vs. PCIT (ITAT Mumbai)
 ITO vs. Wiz-Tech Solutions Pvt. Ltd (ITAT Kolkata)
 Pesak Ventures Ltd. vs. DCIT (ITAT Delhi)
 PCIT vs. Texraj Realty P.Ltd (Gujarat High Court)
 PCIT vs. Texraj Realty P.Ltd (Gujarat High Court)
 Ahmed Charaniya vs Jasmine Charaniya
  Assistant Commissioner Of Income Tax Vs Saabri Freight Carrier Pvt Ltd

CIT vs. Bank Of Nova Scotia (Supreme Court)
January, 27th 2016

S. 271C: Penalty for failure to deduct TDS cannot be levied if Dept is unable to show contumacious conduct on the part of the assessee

The Tribunal deleted the levy of penalty u/s 271-C for failure to deduct tax at source on the basis that the department has to show that there was “contumacious conduct on the part of the assessee”. It held:

“We have carefully considered the rival submissions. In the instant case we are not dealing with collection of tax u/s 201(1) or compensatory interest u/s 201(1A). The case of the assessee is that these amounts have already been paid so as to end dispute with Revenue. In the present appeals we are concerned with levy of penalty u/s 271-C for which it is necessary to establish that there was contumacious conduct on the part of the assessee. We find that on similar facts Hon’ble Delhi High Court have deleted levy of penalty u/s 271-C in the cae of M/s. Itochu 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.”

The department’s appeal was dismissed by the High Court. On appeal to the Supreme Court, HELD dismissing the appeal:

“On facts, we are convinced that there is no substantial question of law, the facts and law having properly and correctly been assessed and approached by the Commissioner of Income Tax (Appeals) as well as by the Income Tax Appellate Tribunal. Thus, we see no merits in the appeal and it is accordingly dismissed. No costs.”

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions