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| The Tax Publishers2020 TaxPub(DT) 0156 (Bang-Trib) INCOME TAX ACT, 1961
Section 271C
Assessee was a small trader in cotton, kappas and seeds at Ranebennur, which was a small town. There were no qualified professionals who could advise assessee regarding compliance of TDS provisions. It was only during survey conducted by ITO, TDS when assessee came to know about obligation to deduct tax at source, therefore, assessee's plea that failure to deduct tax at source was unintentional, deserved acceptance and it was not a fit case for levy of penalty under section 271C as circumstances pointed out above would be reasonable cause within the meaning of section 273B for failure to deduct tax at source.
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Penalty under section 271C - Non-deduction of tax at source - Assessee operation for small term having no knowledge of TDS provisions -
Assessee was engaged in trading in cotton, Kappas and cotton seeds. He made payment of various expenses without TDS. AO levied penalty under section 271C. Assessee pleaded that failure to deduct tax at source was unintentional. Held: Assessee was a small trader in cotton, kappas and seeds at Ranebennur, which was a small town. There were no qualified professionals who could advise assessee regarding compliance of TDS provisions. It was only during survey conducted by ITO, TDS when assessee came to know about obligation to deduct tax at source, therefore, assessee's plea that failure to deduct tax at source was unintentional, deserved acceptance and it was not a fit case for levy of penalty under section 271C as circumstances pointed out above would be reasonable cause within the meaning of section 273B for failure to deduct tax at source.
REFERRED :
FAVOUR :
A.Y. :
IN THE ITAT, BANGALORE BENCH
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