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The Tax Publishers Gujarat Pipavav Port Ltd. v. Addl. CIT [ITA Nos. 2347 & 2348/Mum/2014, dt. 21-4-2016] : 2016 TaxPub(DT) 2205 (Mum-Trib) Penalty under section 271C if quantum assessment fails *Facts:* Assessee port was held to be in default of non-deduction of TDS under section 40a(ia). The assessing officer/Commissioner (Appeals) levied penalty under section 271C on the same. Subsequently the quantum additions under section 40a(ia) were negated by ITAT. Appeal under section 271C reached the ITAT ad interim: Held in favour of the assessee that if the quantum additions fail, then penalty provisions also cannot be sustained.

The Tax Publishers

Gujarat Pipavav Port Ltd. v. Addl. CIT [ITA Nos. 2347 & 2348/Mum/2014, dt. 21-4-2016] : 2016 TaxPub(DT) 2205 (Mum-Trib)

Penalty under section 271C if quantum assessment fails

Facts:

Assessee port was held to be in default of non-deduction of TDS under section 40a(ia). The assessing officer/Commissioner (Appeals) levied penalty under section 271C on the same. Subsequently the quantum additions under section 40a(ia) were negated by ITAT. Appeal under section 271C reached the ITAT ad interim:

Held in favour of the assessee that if the quantum additions fail, then penalty provisions also cannot be sustained.