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2015 (10) TMI 1745 - AT - Income TaxPenalty u/s 271C - treating the assessee to be in default for not deducting tax at source u/s 194A(3) on interest paid / credited to Societies viz H.P. Society for Promotion of IT & E-Governance (SITEG) - CIT(A) deleted penalty levy - Held that:- provisions of section 194A were not applicable to H.P. Society for Promotion of IT & E Governance (SITEG) from whom tax has not been deducted by the bank and, therefore, it is clear that assessee bank was not liable to deduct tax. In any case the Hon'ble Supreme Court in the case of CIT Vs. Eli Lilly And Company (India) Private Limited [2009 (3) TMI 33 - SUPREME COURT] has clearly held that if the assessee has a genuine belief that assessee was not required to deduct tax then penalty u/s 271C of the Act was not liable. Therefore, we find nothing wrong with the order of Ld. CIT(A) and we confirm the same. - Decided in favour of assessee.
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