Penalty u/s 221
This query is : Resolved
R. S. Kesari
(Querist)
30 October 2010
Dear Experts,
A company has dedcuted TDS during the year 2007-08 and 2008-09. Instead of depositing the tax monthly, it deposited in long intervals e.g. TDS decuted from Apr'07 to Dec' 07 was despoited in Mar'08 and like that. Although the company has paid interest for late payment as asked by the department, the the department further wants to initiate penalty proceeding u/s 221.
Is there any way out to avoid the penalty? Please advise with supporting case law if any.
A company has dedcuted TDS during the year 2007-08 and 2008-09. Instead of depositing the tax monthly, it deposited in long intervals e.g. TDS decuted from Apr'07 to Dec' 07 was despoited in Mar'08 and like that. Although the company has paid interest for late payment as asked by the department, the the department further wants to initiate penalty proceeding u/s 221.
Is there any way out to avoid the penalty? Please advise with supporting case law if any.
30 October 2010
First , what was the reason to make the deposit of tax so late instead of depositing on due dates.
If the reasons are acceptable, then there may be some way, otherwise penalty procedding is correctly initaited by the Deptt.
If the reasons are acceptable, then there may be some way, otherwise penalty procedding is correctly initaited by the Deptt.
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CA.Amit Revankar
(Expert)
30 October 2010
Dear Kesari,
1)As per law, the AO is extremly correct in levying the penalty and furthur u cant challenge him legally,
2)Reference of case law are generally taken when there is requirement of clarification on any law matters, otherwise it may not be so useful.
Advice :
According to me, the only way with u is "CONVENCING", try to convince the AO that penalty may cause "undue hardship or similar" with strong justification. If the Ao doesnt agree make an application to its juridicational superior officer.
1)As per law, the AO is extremly correct in levying the penalty and furthur u cant challenge him legally,
2)Reference of case law are generally taken when there is requirement of clarification on any law matters, otherwise it may not be so useful.
Advice :
According to me, the only way with u is "CONVENCING", try to convince the AO that penalty may cause "undue hardship or similar" with strong justification. If the Ao doesnt agree make an application to its juridicational superior officer.
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