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2014 (2) TMI 1228 - ITAT AHMEDABADPenalty u/s.271C - non deduction of tds - Held that:- As per the provisions of Section 273B no penalty u/s.273C shall be imposable in case of failure referred in the said provisions if the assessee proves that there was reasonable cause for the said failure. In the present case, the employer company has relied upon the provisions of Section 17(2) r.w.s 192 of the IT Act for the purpose that food allowance per meal ₹ 15 per day is exempted from tax and that employees were placed on remote areas; hence, not chargeable to tax. The assessee has pleaded that under bona fide belief it was decided that reimbursement of “canteen subsidy scheme” was not subject to TDS. We have noted that in the case of Muthoot Bankers, [2011 (9) TMI 638 - ITAT COCHIN ], it was held that no penalty is leviable if there is a bona fide omission in not deducting the tax at source. We have also examined the case laws as indicated by learned Sr.D.R. but considering the facts and circumstances of the case, those case laws are distinguishable on fact and law; hence, not helpful to the Revenue Department. Resultantly, we hereby affirm the view taken by learned CIT(A) and dismiss the ground of the Revenue. - Decided in favour of assessee
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