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10-07-2019, Vodafone Idea, Section 273B, 194H, 271C, Tribunal Delhi

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3 months 4 days ago #10027 by amit
Section - 273B, 194H, 271C, 271(1)
Order Date - 10-07-2019
Favouring - Assessee
Court - Tribunal Delhi
Appellant - Vodafone Idea Limited
Respondent - ACIT
Justice - N. K. BILLAIYA AM & SUCHITRA KAMBLE JM
Citation - 719Taxpundit121
Appeal No. - I.T.A. No. 3368/DEL/2015
Asstt. Year - 2005-06

Order

PER : SUCHITRA KAMBLE, JM

These three appeals are filed by the assessee against the orders dated 20.03.2015 passed by CIT(A)-41, New Delhi for assessment years 2003-04, 2004-05 and 2005-06.

2. Grounds of appeals are as under:-

ITA No. 3366/Del/2015 (A.Y. 2003-04)

Ground no. 1 : Passing of order barred by limitation u/s 275 of the Act

1. On the facts and in circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals)-41, New Delhi (“CIT(A)”) erred in not annulling the penalty order passed u/s 271C of the Income Tax Act, 1961 (“the Act”) by the Additional Commissioner of Income, Range 50, New Delhi (“the TDS Officer”) which was barred by limitation u/s 275 of the Act.

2. The Appellant prays that, the penalty order, being time barred be annulled/set aside as being ab-initio void and bad in law.

WITHOUT PREJUDICE TO GROUND I

GROUND NO. II :

1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in upholding the action of the TDS Officer in levying penalty amounting to Rs. 10,73,990/- u/s 271C of the Act on the alleged ground that the Appellant has failed to deduct tax at source u/s 194H of the Act.

2. He failed to appreciate and ought to have held :

a) the Appellant had acted under an honest and bona fide belief that tax was not deductible u/s 194H of the Act on “discount” (alleged by the department as commission”) given to distributors;

b) Appellant’s stand was als approved by the Hon’ble Tribunal before the Hon’ble High Court reversed those decisions and therefore there was a “reasonable cause”.

c) There was a “reasonable cause” for non-deduction of TDS and in view of section 273B of the Act, no penalty can be levied.

d) Without Prejudice, if the mechanism to deduct TDS fails in absence of payment’ or ‘credit’, there is a ‘reasonable cause’ for non-deduction of TDS u/s 194H of the Act.

3. The Appellant prays that the penalty amounting to 10,73,990/- levied u/s 271C of the Act be deleted.

GROUND NO. III

The Appellant craves leave to add, to alter and / or amend, withdraw all or any of the foregoing grounds of appeal.”

ITA No. 3367/Del./2015 (A.Y. 2004-05)

GROUND NO. I: Passing of order barred by limitation u/s 275 of the Act

1. On the facts and in circumstances of the case and in law, the Learned Commissioner of Income-tax (Appeals) - 41, New Delhi (“CIT(A)”) erred in not annulling the penalty order passed u/s 271C of the Income Tax Act, 1961 (“the Act”) by the Additional Commissioner of Income, Range 50, New Delhi (“the TDS Officer”) which was barred by limitation u/s 275 of the Act.

2. The Appellant prays that, the penalty order, being time barred be annulled/set aside as being ab-initio void and bad in law.

WITHOUT PREJUDICE TO GROUND I

GROUND NO. II:

1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in upholding the action of the TDS Officer in levying penalty amounting to Rs. 30,76,179/- u/s. 271C of the Act on the alleged ground that the Appellant has failed to deduct tax at source u/s. 194H of the Act.

2. He failed to appreciate and ought to have held:

a) the Appellant had acted under an honest and bona fide belief that tax was not deductible u/s. 194H of the Act on “discount” (alleged by the department as “commission”) given to distributors;

b) Appellant’s stand was also approved by the Hon’ble Tribunal before the Hon’ble High Court reversed those decisions and therefore there was a “reasonable cause”.

c) There was a “reasonable cause” for non-deduction of TDS and in view of section 273B of the Act, no penalty can be levied.

d) Without Prejudice, if the mechanism to deduct TDS fails in absence of ‘payment or ‘c edit’, there is a ‘reasonable cause’ for non-deduction of TDS u/s 194H of the Act.

3. The Appellant prays that the penalty amounting to 30,76,179/- levied u/s. 271C of the Act be deleted.

GROUND NO. III:

The Appellant craves leave to add, to alter and / or amend, withdraw all or any of the foregoing grounds of appeal.

ITA no. 3368/Del./2015 (A.Y. 2005-06)

Ground No. 1 :

1. On the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals)-41, New Delhi (“CIT(A)”) erred in upholding the action of the Additional Commissioner of Income, Range 50, New Delhi (“the TDS Officer”) in levying penalty amounting to Rs. 62,00,145/- u/s 271C of the Income Tax Act,

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