- (1.) Heard learned Counsel for the appellant Sri D. D. Chopra and perused the record.
(2.) This appeal under Section 260A of the Income-tax Act, 1961 has been preferred by the Department on the following substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal, Lucknow, was correct in holding that provisions of Section 206 of the Income-tax Act, 1961 will be attracted only if the tax has been deducted ? 2. Whether, on the facts and in circumstances of the case, the hon'ble Income-tax Appellate Tribunal was correct in holding that since the tax has not been deducted, there is no violation of the provisions of Section 206 of the Income-tax Act, 1961 and, therefore, penalty is not leviable without appreciating the fact that Sections 192 and 206 read with Rule 36 of the Income-tax Rules, 1962 are interlinked ?
(3.) Sri D. D. Chopra, learned Counsel for the appellant, has vehemently urged that non-deduction of tax at source, for which penalty has already been imposed under Section 271C of the Income-tax Act, would not absolve the assessee of the penalty imposable under Section 272A(2)(g) and 272A(2)(c). His submission is that the violation of the provisions of Sections 203 and 206 in itself makes out a case for levying the penalty, irrespective of the fact that the penalty has been imposed upon the asses-see under Section 271C of the Act.;