called upon to pay penalties by virtue of sections 221 and
271C of the Act. Pursuant to the interim orders that were made on
these ... legal position of penalty be it
either under section 221 or 271C not being an inevitable corollary
in case of default. This position is made
case, the Ld.
ITAT has erred in deleting the penalty u/s 271C of the Income ... ITAT has erred in not considering that the penalty
order u/S 271C was passed after giving sufficient opportunity of
hearing to the assessee, including
under section 40(a)(i), recovery under
section 201, penalty under section 271C and, in certain
situations, even prosecution under section 276B. What
ITAT was justified in deleting the penalty levied
under Section 271C wherein disallowance of provision of
liability of expenditure does not absolve the tax deductor
order dated 31 October 2023 referable to
Section 271C for Assessment Year ["AY"] 2016-17. Besides this,
challenge is also laid
alternative rested their case for imposition of
a penalty referable to Section 271C of the Act.
4. In that view of the matter, we find
ITAT was Justified in deleting the penalty levied under
Section 271C wherein disallowance of provision of liability of
expenditure does not absolve the tax deductor
