Deduction of tax at source on interest income before close of the financial year concerned as provided under Section 194 A (4) of the Act would not absolve the assessee Bank from penalty for not deducting the tax at source from the interest income of the Agra Development Authority at the time of credit of the said income in its account and that there was no reasonable cause on part of the assesee Bank for not deducting tax at source on the interest income of the Agra Development Authority so as to permit any benefit of exemption from penalty as envisaged under Section 273 B of the Act.
Facts of the Case :
- The assessee Bank had various fixed deposits of the Agra Development Authority under different IDs for many years.
- It failed to deduct tax at source (TDS) and deposit the same with the Central Government for the financial years 2012-13 and 2013-14.
- Accordingly, penalty under Section 271 C of the Income Tax Act, 1961 (in short of the Act) amounting to Rs. 6,84,167/- and Rs. 13,23,794/-was imposed for the assessment years 2012-13 and 2013-14 respectively.
To download complete order, Union Bank Of India Ada Branch Jaipur House Agra ITA No. 225 & 230 of 2017