Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 577 - ITAT AHMEDABADPenalty - Deduction of tax at source - Payment to non-residents - Penalty u/s 271C of the IT Act - lower deduction of tax - assessee contended that it received 'Nil deduction certificate' issued by DDIT (International Taxation), being the Assessing Officer of the Contractor Company - assessee company obtained confirmation letter from the DDIT (International Taxation), confirming the above certificate – Held that:- Assessee acted bona fidely and not deducted tax from payment made to the Contractor Company under the specific contract - section 273B of the Act does not make a levy of penalty under section 271C of the Act mandatory - assessee would not be liable to penalty if he is able to prove that there was a reasonable cause for failing to deduct the tax - certificate earlier issued u/s 194C (4) of the IT Act and clarification thereof issued by DDIT (International Taxation), Chennai, was of the bona fide belief that it was required to deduct TDS u/s 194C of the IT Act and not u/s 195 of the IT Act which is applicable in case of non-resident – penalty set aside - appeal of the assessee is allowed.
|