Case Law Details
CA Prarthana Jalan
Hon’ble AGRA ITAT has in the case of Pushpanjali Constructions has held that In the absence of contumacious conduct of the assessee, penalty under section 271C is not leviable
Brief facts relating to the case are that a survey 133A of the Act was conducted in the premises of the assessee on 15/10/2009 during the course of which it was found that the assessee had deducted tax amounting to Rs.15,76,219/- under various section of the Income Tax Act but had not deposited the same to the Government account. Thereafter order under section 201(1)/201(1A) of the Act was passed on 26/02/2009 raising gross demand of Rs. 16,39,448/- comprising of tax under section 201 of Rs. 15,76,219/- and interest under section 201(1A)of Rs. 63,229/- and further penalty proceedings under section 271C were initiated. During the course of penalty proceeding the assessee pleaded that the tax deducted had not been deposited because the concerned person who was looking into the taxation matter had left the job.
However the AO rejected the submission of the assessee observing that the assesse had not deposited the tax deliberately. Ld. AO held that If the survey had not been conducted, the assessee would have embezzled the amount of tax deducted and levied penalty under section 271C of the Act amounting to Rs. 15,76,219/-. The Ld CIT(Appeals) had deleted the penalty. The order of the Ld CIT(A) was upheld by the department by observing as under:-
12. We find that It is not in dispute that the assessee had deducted tax amounting to Rs. 15,76,219/-. The only default committed by the assessee was failure to deposit the same to the Government.
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