ITAT Chandigarh Upholds Sec 271C Penalty – Nodal Govt. Agency Liable for Non-Deduction of TDS U/s 194C

Assistant Controller F&A Directorate of Industries Vs ITO (TDS) (ITAT Chandigarh) ITAT dismissed the appeal and upheld penalty u/s 271C for failure to deduct TDS on payments routed through a Government nodal agency. Though delay in filing appeal before CIT(A) was condoned adopting a liberal approach, the Tribunal held on merits that mere routing of Government funds through another agency (HPSIDC) does not absolve the assessee from statutory obligation to deduct tax u/s 194C. ITAT observed that tax is required to be deducted at the time of credit or payment, whichever is earlier, and admini...