| Case ID |
046d3cbd-8f13-48a9-9f43-96534c164d92 |
| Body |
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| Case Number |
IT APPEAL NOS. 649 AND 678 OF 2007 |
| Decision Date |
Aug 02, 2007 |
| Hearing Date |
Aug 02, 2007 |
| Decision |
The Tribunal upheld the order of the Commissioner (Appeals) which deleted the penalty imposed on the Assessee for not issuing TDS certificates on time. The Tribunal found that there was a reasonable cause for the delay, primarily due to a lock-out situation which affected production and statutory obligations. The findings were based on appreciation of evidence, and the Tribunal concluded that the Assessee's explanation constituted sufficient cause for the default. Consequently, no substantial question of law was raised for further appeal. |
| Summary |
In the case of Commissioner of Income-tax (TDS) v. General Engg. Works, the Delhi High Court dealt with the imposition of penalties under section 272A(2)(g) of the Income-tax Act, 1961. The Assessee faced penalties for failing to issue TDS certificates due to a prolonged lock-out that severely impacted its operations. The Tribunal ruled in favor of the Assessee, stating that the circumstances constituted a reasonable cause as outlined in section 273B. The decision emphasized the importance of considering factual circumstances surrounding compliance failures in tax law and highlighted how genuine operational challenges can mitigate liability. This case serves as a precedent for similar situations where businesses face external pressures affecting their compliance with tax regulations. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
Madan B. Lokur,
V.B. Gupta
|
| Lawyers |
Mrs. P.L. Bansal
|
| Petitioners |
Commissioner of Income-tax (TDS)
|
| Respondents |
General Engg. Works
|
| Citations |
2009 SLD 1987,
(2009) 311 ITR 208,
(2007) 165 TAXMAN 11
|
| Other Citations |
Gujarat Travancore Agency v. CIT [1989] 177 ITR 455
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
272A(2)(g),
273B
|