Section 271C Penalty Deleted as Proceedings Were Barred by Section 275(1)(c) Limitation

Jagdish Prasad Singhania Vs Additional Commissioner of Income Tax (TDS) (ITAT Raipur) Summary: The ITAT Raipur allowed the assessee’s appeal and deleted penalty imposed under Section 271C of the Income Tax Act on the ground that the penalty proceedings were barred by limitation under Section 275(1)(c). The case involved alleged failure to deduct TDS on interest payments, where the Assessing Officer completed assessment on 29.12.2016 and later referred the matter to the Additional Commissioner (TDS) on 27.06.2017 for initiating penalty proceedings. However, the show cause notice for penalty ...