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2015 (12) TMI 1537 - AT - Income TaxLevy of penalty u/s 271C - non deducting the tax at source - assessee treated as 'assessee in default' - Held that:- We find that the assessee has not been treated as an “assessee in default” as per section 201 of the Act and is therefore neither liable to deduct nor pay any tax as per Chapter XVII B. In such circumstances, we find that the question of levy of penalty u/s 271C, does not arise. This view has been upheld in the case of ACIT Vs. M/s Good Health Plan Limited [2014 (1) TMI 1233 - ITAT HYDERABAD ] wherein penalty levied u/s 271 C was deleted since the assessee was not held to be an assessee in default. The tax on the impugned sums had been reimbursed to PGCIL has not been controverted by the Revenue. In such circumstances the belief harboured by the assessee that by deducting further TDS, it would tantamount to double taxation, appears to be a reasonable and bonafide belie No merit in the contention of the Ld. DR that the assessee had no reasonable cause for not deducting tax at source. Further we hold that in lieu of the provisions of section 273B which states that no penalty shall be leviable in cases where reasonable cause for the default committed has been demonstrated, the penalty levied u/s 271C is liable to be deleted. - Decided in favour of assessee
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