Case Law Details
Bank of India Vs. JCIT (ITAT Jaipur)
The issue under consideration is whether assessee is considered as assessee in default u/s 201(1) and 201(1A) for non-deduction of TDS?
In the present case, the assessee bank has paid interest on fixed deposits placed with it by one of its customers, Jaipur School Samiti on which no TDS was deducted on account of submission of Form 15G by the said Samiti. However, the Assessing Officer passed the order under section 201(1) read with 201(1A) holding the assessee bank to be in default for non-deduction of TDS on interest on FDR.
ITAT states that, the Assessing officer u/s 201(1) read with 201(1A) holding the assessee to be in default for non-deduction of TDS has been held as null and void and has attained finality and thus, in effect, there is no order where the assessee has been held guilty of non-deduction of TDS. Even in the penalty order so passed by the Add. CIT(TDS), he has relied on the findings of the AO in the order passed u/s 201(1) read with 201(1A) while levy the penalty. Further, we find that the assessee has relied on Form 15G filed by the Jaipur School Samiti and basis the same, has not deducted the TDS. In light of the aforesaid facts and circumstances of the present case, we therefore find that there was reasonable cause for non-deduction of TDS and the levy of penalty u/s 271C deserves to be set aside. ITAT accordingly set aside the penalty u/s 271C of the Act and appeal decided in favour of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
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