ACIT Vs M/s Seaways Shipping Ltd. (ITAT) (ITAT Hyderabad) – Non deduction of TDS by the assessee was resulted in dis allowance of expenditure u/s 40(a) (ia), that itself cannot be construed as furnishing inaccurate particulars of income or concealment of income. The assessee has failed to deduct TDS which resulted in dis allowance of expenditure; the mistake committed by the assessee was compensated by disallowing the expenditure. Further, the Revenue cannot penalize the assessee by levying penalty u/s 271(1)(c) of the Act. In order to levy penalty u/s 271(1)(c) of the Act, there has to be concealment of particulars of income of the assessee or the assessee must have furnished inaccurate particulars of its income.
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD “A” BENCH, HYDERABAD
ITA No. 80/H/2011
Assessment year :2005-06
ACIT Vs M/s Seaways Shipping Limited
ORDER
PER CHANDRA POOJARI, A.M:
This appeal preferred by the Revenue is directed against the order passed by the CIT(A) -IV, Hyderabad dated 29.10.20 10 and pertains to the assessment year 2005-06.
2. The revenue raised the following grounds in its appeal:
1. The CIT(A) erred in law and allow the assessee’s appeal.
2. The CIT(A) ought to have upheld the penalty levied by the Assessing Officer as the assessee had understated the income by not deducting tax at source on certain payments made which attracts TDS and by not addition certain expenditure to total income on which TDS was made beyond due dates.
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