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2013 (1) TMI 507 - AT - Income TaxNon deduction of TDS on equipment hire charges paid to the doctors - levy of interest under section 201(1A) - penalty u/s 271C - Held that:- Not in dispute that before the A.O. it was submitted that the assessee was under the bonafide belief that in respect of equipment hire charges paid to doctors, the assessee was not liable to deduct TDS as the payment to doctors was in the nature of reimbursement of expenses. In the absence of any contrary material placed on record by the Revenue to show that the bonafide belief shown by the assessee is found to be false or untrue and keeping in view that the reimbursement of charges paid by the assessee do not have any element of income, respectfully following the decisions of All India J.D. Educational Society [2010 (11) TMI 668 - DELHI HIGH COURT], Eli Lilly & Company (India) Pvt. Ltd. [2009 (3) TMI 33 - SUPREME COURT] & Hindustan Steel Ltd. vs. State of Orissa [1969 (8) TMI 31 - SUPREME COURT] hold that there was a reasonable cause that the assessee was under the bonafide belief that he is not liable to deduct tax at source - uphold the order passed by the CIT(A) in deleting the penalty - in favour of assessee.
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