National Highway Authority of India Vs Addl. CIT (TDS) (ITAT Lucknow)
The case before the Income Tax Appellate Tribunal (ITAT), Lucknow Bench, involved an appeal filed by the National Highway Authority of India (NHAI) against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi, dated 29 May 2023, for the assessment year 2012–13. The dispute centered on a penalty of ₹10,61,318 imposed under Section 271C of the Income-tax Act, 1961, for alleged failure to deduct tax at source (TDS) as required under Chapter XVII-B.
Background of the Case
The Assessing Officer (AO) passed an order under Sections 201(1) and 201(1A) on 28 March 2019, determining that NHAI had defaulted in TDS deduction. On the same day, the AO referred the matter to the Additional Commissioner of Income Tax (TDS) for initiating penalty proceedings under Section 271C. The penalty order was later issued on 15 November 2019, and a corresponding demand notice dated 19 November 2019 was issued by the Deputy Commissioner of Income Tax (TDS).
NHAI challenged the penalty before the NFAC, contending that the order was barred by limitation and legally unsustainable. The NFAC, however, upheld the penalty, leading NHAI to appeal before the ITAT.
