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| The Tax Publishers2021 TaxPub(DT) 1132 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
When the assessee itself had deducted tax under section 194C and deposited the same with Government exchequer along with interest well prior to date of filing of income-tax return, it shows its bona fide creating a reasonable cause to be covered under section 273B and hence, penalty imposed under section 271(1)(c) by AO was not sustainable.
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Penalty under section 271(1)(c) - Leviability - Assessee making suo motu deposit of tax deducted at source along with interest prior to date of filing of return of income -
Revenue was in appeal against the order of CIT(A) deleting the penalty levied under section 271(1)(c) on the ground that assessee company had suo motu deposited the tax deducted at source along with interest under section 194C in the Government account to settle the dispute treating it as to be a reasonable cause as per section 273B.Held: When, in the undisputed facts and circumstances of the case, assessee company had voluntarily on its own deducted the tax and deposited the same with Government exchequer along with interest well prior to date of filing of income-tax return, it shows its bona fide creating a reasonable cause to be covered under section 273B. Hence, penalty imposed by AO was not sustainable and thus, no illegality or perversity could be found in the impugned order passed by the CIT(A).
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2011-12
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