Case Law Details
US Technologies International Pvt. Ltd. Vs CIT (Supreme Court of India)
BELATED REMITTANCE OF THE TDS AFTER DEDUCTING THE TDS WHETHER SUCH AN ASSESSEE IS LIABLE TO PAY PENALTY U/S 271C
The Apex Court decision is on appeal against order passed by the High Court of Kerala confirming the levy of interest/penalty under Section 271C.
In this case, ITO had levied penal interest u/s 201(1A) for the belated remittance of the TDS. Addl CIT had levied penalty u/s 271C ( amount equal to TDS ) and the said penalty order came to be confirmed by the Kerala High Court.
At the very outset it is to be noted that this is a case of belated remittance of the TDS though deducted by the assessee and not a case of non deduction of TDS at all.
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Author Bio
One should not get carried away that since penalty itself is not leviable, prosecution can not be initiated. This is a case where the Act doesn’t provide for the penalty. Prosecution provsions DO APPPLY. In fact para 7.7 of the decision is emphatic.