| |
The Tax PublishersITA No. 2/Bang/2020
2020 TaxPub(DT) 5318 (Bang-Trib)INCOME TAX ACT, 1961
Section 271C
On identical default of non-deduction of tax at source. admission of substantial question of law by the High Court lends credence to bona fides of assessee and it became apparent that issue was certainly debatable. Accordingly, penalty under section 271C was not sustainable.
|
Penalty under section 271C - Non-deduction of tax at source - Leviability - On identical default substantial question of law admitted by High Court
During survey, it was noticed that the assessee had not deducted tax at source properly. Accordingly, AO passed order under section 201 treating assessee as one in-default and levied penalty under section 271C. Assessee challenged penalty levied by AO on the ground that on identical default, High Court had admitted substantial question of law. Held: On identical default of non-deduction of tax at source. admission of substantial question of law by the High Court lends credence to bona fides of assessee and it became apparent that issue was certainly debatable. Accordingly, penalty under section 271C was not sustainable.
Followed:Syndicate Bank v. Asstt. CIT ITA Nos. 651 to 656/Bang/2019, dated 19-7-2019 : 2019 TaxPub(DT) 5479 (Bang-Trib)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, BANGALORE BENCH
 SUBSCRIBE FOR FULL CONTENT
|