आयकर अपीलीय अिधकरण, अहमदाबाद (cid:8)यायपीठ ‘B’ अहमदाबाद।

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.2678 and 2679/Ahd/2017 Assessment Year : 2015-16 AND ITA No.2680 and 2681/Ahd/2017 Assessment Year : 2016-17 Xcellon Education Limited Vs. ACIT, TDS

10^th Floor, Sangeeta Complex Ahmedabad.

Nr. Parimal Crossing Ellisbridge Ahmedabad 380 006.

PAN : AHMX00028A Assessee by : Shri Tushar Hemani, Sr.Advocate Shri Parimalsinh B. Parmar, AR Revenue by : Shri Ravindra, Sr.DR सुनवाई क(cid:9) तारीख/Date of Hearing : 26/12/2024&25/02/2025 घोषणा क(cid:9) तारीख /Date of Pronouncement: 07/03/2025 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER All four appeals relate to the same assessee and pertain to two different assessment years i.e. Asst.Year 2015-16 and 2016-17 with the issues involved relating to levy of penalty under section 272A(2)(g) and section 271C of the Income Tax Act, 1961 ("the Act" for short). All the appeals arise from the order passed by the ld.CIT(A) under section 250(6) of the Act, confirming the penalty levied by the AO for both the assessment years.

2. While the appeal in IT No.2679/Ahd/2017 and 2681/Ahd/2017 pertains to the issue of levy of penalty under section 271C of the Act for the Asst.Year 2015-16 and 2016-17 respectively, the appeal in ITA No.2678/Ahd/2017 and 2680/Ahd/2017 relates to levy of penalty under section 272A(2)(g) of the Act for the impugned assessment years before us.

3. Both the penalties, it was common ground, were inter-related for the violation of the provisions of the Act pertaining to the tax deducted at source (TDS), with penalty under section 271C of the Act being levied for not depositing the TDS in time, while that levied under section 272A(2)(g) for not filing the requisite TDS returns (quarterly) in time pertaining to the same TDS which was not found deposited in time by the assessee. For both the impugned assessment years before us the assessee has been visited with penalty both for not depositing TDS in time and also for not furnishing requisite TDS returns in time. All the issues involved in the present appeals arise, it was common ground, from the same background of the facts, therefore, all the appeals were taken up together for hearing and are being dealt with by this common consolidated order.

4. We shall be dealing with the levy of both the penalties, u/s 271C & 272A(2)(g) of the Act by dealing with the facts pertaining to Asst.Year 2015-16.

ITA 2678/Ahd/2017 A.Y 2015-16 - 272A(2)(g)

ITA 2679/Ahd/2017A.Y 2015-16 - 271C

5. The facts relating to the issue, as noted in the order of the ld.CIT(A) ,is that the assessee is a company incorporated under the Companies Act, 1956 and is engaged in the profession of spreading higher education by running management institute. During the year under appeal, the assessee had incurred expenditure referred to in sections 194C, 194H, 194-I, 194J and 192B and defaulted in complying with the TDS provisions. A survey operation under section 133A of the Act was carried out at the business premises of the assessee on 30.11.2015 by the Income Tax Authority of TDS Range, Ahmedabad. During the course of survey, it was observed by the survey team that the assessee had defaulted in deposit of TDS amounting to the tune of Rs.26,33,867/- to the Government account. The DCIT(TDS), Ahmedabad passed an order under section 201(1)/201(1A) of the Act on 11.3.2016 whereby the assessee- company was treated as assessee-in-default for total sum of Rs.31,11,556/-, for the unpaid TDS amount of Rs.26,33,867/- and Rs.4,77,689/- being interest under section 201(1A) of the Act. After considering the payment already made by the assessee, a demand of Rs.9,72,910/- was raised for the said year. In the said order, the AO also initiated penalty proceedings both under section 271C of the Act for not paying TDS pertaining to the financial year 2014-15 within the stipulated ti