Article
Penalty under Sections 221 & 271C for non-deduction/ short deduction of tax at source
By Venkat Ramanan and Abhinov Vaidyanathan
The article in this issue of Direct Tax Amicus deals with a peculiar issue of simultaneous applicability of two penal provisions being Sections 221 and 271C of the Income Tax Act, 1961, which may be fastened on the assessee for non-deduction/ short deduction of tax at source. The authors for this purpose consider the relevant provisions, applicability of Rule of Double Jeopardy and various judicial precedents on applicability of two penalty provisions for the short deduction of TDS. Observing that uncertainty regarding applicability of dual penalty for non-deduction/ short deduction of tax at source persists, the authors are of the view that the said issue may get resolved if the CBDT issues necessary clarification…
Notifications & Circulars
- Time limit for compliance to claim exemption under Sections 54 to 54GB of IT Act extended
- Co-operative societies – Dealership/ distributorship contract by itself may not constitute an event or occasion for Section 269ST(c)
- Partial relaxation granted to certain taxpayers from e-furnishing Form No. 10F
Ratio decidendi
- Jurisdiction under Section 263 not to be invoked by Commissioner when there is no lack of enquiry or where one of the possible views is adopted by AO – Calcutta High Court
- Sums received by Singapore company from Indian customers for provision of disaster recovery up-linking services and playout services cannot be taxed in India – ITAT Delhi
- Director cannot be proceeded against under Section 179, where non-recovery of demand from company is not due to his negligence – Gujarat High Court
- Transfer pricing – Section 92CA is a machinery provision – Section 153 deals exclusively with limitation – Madras High Court
- Prosecution – Age of assessee ought to be taken at date of opening foreign account and not the date on which amount was not disclosed in the Return – Delhi High Court
