CIT (TDS)-1 Vs Adma Solutions Pvt Ltd (Delhi High Court)
Delhi High Court held that passing of penalty order after the lapse of six months from the end of the month in which the penalty proceedings were initiated by the AO is untenable. Thus, penalty order set aside as passed beyond time period framed u/s. 275(1)(c) of the Income Tax Act.
Facts- The assessee M/s. Adma Solutions Pvt. Ltd. (formerly known as M/s. Infovision Information Services Pvt. Ltd.) is a corporation engaged in the business of rendering Call Centre Services and derives income from such business.
A survey operation u/s. 133A of the Income Tax Act, 1961 was conducted by the TDS Wing of the Income Tax Department at the business premises of the assessee company, wherein, certain non-compliances of TDS provisions were detected.
On 30.03.2011, AO passed an order u/s. 201(1) read with Section 201(1A) of the Act, holding the assessee to be in default for not paying the relevant TDS and penalty proceedings were referred to the Additional CIT, Range-50 for levy of penalty u/s. 272A(2)(c) and 272A(2)(k) of the Act.
A Show Cause Notice dated 31.01.2013/01.02.2013 was issued by the erstwhile JCIT, Range-50, which was received on 14.02.2013 by the Manager, Finance of the assessee company. Thereafter, penalty order dated 29.07.2013 was passed u/s. 271C, 272A(2)(c) & 272A(2)(k) of the Act.
