In the course of survey on 25-7-2013 at business premises of the assessee\u00a0 it was noticed that the assessee had collected the tax and\u00a0 retained with it . Proceedings under S. 201(1A)\u00a0were initiated and the assessee was declared an assessee in default under S. \u00a0201 of the Act . The assessee remitted the amount with interest. Thereafter penalty proceedings were initiated by notice under S. \u00a0221\u00a0. In the penalty proceedings, the assessee admitted that it was an assessee in default. Penalty was levied and confirmed by the CIT(A). The Tribunal reduced the penalty. On further appeal the assessee submitted that the assessee had failed to remit the amount deducted to the account of the Central Government due to financial crisis. Dismissing the appeal the Court held that\u00a0 a clear finding had been recorded by the Tribunal that the financial stringency pleaded by the assessee was not proved. Even otherwise, financial stringency would not justify the failure to remit tax deducted at source to the Government, inasmuch as, it would amount to utilisation of money payable to the appropriate Government. The Tribunal had directed the AO to restrict the levy of penalty to a sum of Rs. 20,55,573 in substitution to Rs. 77,95,155 levied by the AO. This finding would not call for interference particularly when the assessee had been declared as an assessee in default under S. \u00a0201(1)\u00a0and the order had not been challenged by the assessee.( AY.2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 221 : Collection and recovery \u2013 Penalty – Tax in default – Failure to deposit tax deducted – Survey- Financial stringency not relevant \u2014 Levy of penalty justified [ S.201(1) 201(IA) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-12724","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3je","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12724"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12724\/revisions"}],"predecessor-version":[{"id":12725,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12724\/revisions\/12725"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}