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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