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2015 (3) TMI 53 - AT - Income TaxPenalty u/s 271(1)(c) - non deduction of TDS u/s.194C - disallowance u/s 40(a)(ia) - CIT(A) deleted penalty levy - Held that:- Mere disallowance by Assessing Officer is not sufficient to reach the conclusion of furnishing inaccurate particulars of income. The disallowance made and upheld on account of deeming provisions of Section 40(a)(ia) of the Act are because of non deposit of TDS so deducted by assessee within due date as prescribed u/s. 200(1) of the Act. But, such deducted TDS was duly paid before filing of return of income for the impugned previous year. As per the amendment in Section 40(a)(ia) of the Act which was held as clarificatory; such deposit now does not require the operation of provision of Section 40(a)(ia) of the Act i.e. issue was debatable at relevant point of time. Further, Assessing Officer on his own through rectification u/s. 154 of the Act allowed the claim of expenditure in subsequent year. Assessee bonafidely made the claim, which cannot be said to be furnishing inaccurate particulars of income. Accordingly, CIT(A) was justified in deleting penalty. - Decided in favour of assessee.
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