Case Law Details
Ajit Lalwani Vs ACIT (TDS) (ITAT Indore)
In the instant of two appeals assessee has challenged the levy of penalty u/s 271CA of the Act for the violation of provisions of section 206C of the Act.
We find that the assessee has furnished copy of form 27BA along with copy of Income Tax return of the parties in these cases where the assessee failed to collect tax at source at the time provided under the Act. It is not in dispute before us that later on the assessee had paid the demand of tax collected at source and interest levied thereon. The assessee is only aggrieved with the penalty levied u/s 271CA of the Act.
With reference to the above proviso in case an assessee files the details in form 27BA certified by Chartered Accountant stating that the buyer or licensee or lessee has furnished the return of income u/s 139 of the Act, after taking into account such amount for computing income in such return of income and has paid the tax due on income declared by him in such return of income and once assessee fulfills this condition it will not be treated as the assessee is in default and thus would be precluded from the levy of penalty u/s 271CA of the Act.
Though in the instant case the assessee has deposited TCS and interest thereon subsequently but even in cases where tax is not collected but the assessee furnishes the form 27BA of the Income Tax Rules, then also assessee is not held liable to have violated the provisions of section 206C.
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