Section 271C Penalty applies to both Non-Deduction & Non-Payment of TDS: Kerala HC

US Technologies International Pvt Ltd Vs CIT (Kerala High Court)

Kerala High Court reviewed the appeal by US Technologies International Pvt Ltd against the Income Tax Appellate Tribunal’s decision upholding the penalty under Section 271C of the Income Tax Act. The penalty was levied for the company’s failure to remit tax deducted at source (TDS) for the financial year 2002-03. A survey conducted by the Income Tax Department under Section 133A revealed that while the company had deducted Rs.1.1 crore as TDS on salaries, contractor payments, and professional fees, only Rs.38.94 l

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