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2016 (9) TMI 498 - ITAT DELHIPenalty u/s. 271(1)(c) - order passed u/s. 201(1)/201(1A) or u/s. 143(3) - non deduction of tds - Held that:- The assessee had offered the amounts to tax at the time of filing the Income Tax Return, and subsequently also paid the TDS too, and if the penalty is levied it would be result in double taxation. This view is fully supported by the jurisdictional High Court decision in the case of Woodward Governor India Ltd. Vs CIT (2001 (4) TMI 34 - DELHI High Court ) and Hindustan Steel Ltd. Vs State of Orissa (1969 (8) TMI 31 - SUPREME Court ). In my view, the ld. CIT(A) has rightly observed that the assessee was under a bonafide belief that since he has been hit under the provisions of section 40(a)(i), he need not deposit the tax so deducted. However as his financial position improved he did deposit the TDS alongwith the interest thereon and filed the copy of challan evidencing the payment of TDS. It was further noted that in the case of Indo Nissin Foods Ltd. v. CIT (2003 (9) TMI 294 - ITAT BANGALORE-B ) it is held that not passing order under section 201(1) before initiation of proceedings under section 271C make imposition of penalty invalid. - Decided in favour of assessee
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