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PENALY PROCEEDINGS U/S 271(1)(C) FOR EPF/ESI DISALLOWED

This query is : Resolved 

05 May 2009 ESI/EPF LATE DEPOSITED DISALLOWED BY A.O. ORDER PASSED AND DEMAND RAISED
NOTICE FOR PENALTY PROCEEDINGS ISUUED
CAN IT BE AVOIDED BY SUBMITTING A CONVINCING REPLY BASED ON SOME JUDICIAL DECISIONS ?

05 May 2009 The section postulates a condition for levying of penalty u/s.271-C, i.e. if the assessee has failed to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII- B. The assessee can always have a bona fide belief that as the taxes have been deducted at source, there was no default on the part of the assessee and, no penalty u/s. 271-C was warranted.
The same has to be communicated to the department and justified.


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