Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1652 - AT - Income TaxPenalty u/s 271C - assessee made payments of Lease rent and Interest to Yamuna Expressway Industrial Development Authority (YEIDA) without deduction of tax at source u/s 194I and 194A respectively - Held that:- Liability of the assessee for deduction of tax at source in respect of Interest payment has been waived by the Tribunal, there remains no question of imposing any penalty u/s 271C in that respect. We, therefore, uphold the impugned order to this extent. As regards TDS on payment of Lease rent, the assessee entertained a bona fide belief that no tax withholding was required on lease rent pay no deduction of tax at source made prior to the year of survey on 24.02.2014; no other order against the assessee requiring deduction of tax at source at that time when the assessee made payment of lease rental; and the judgment of the Hon'ble Delhi High Court delivered [2017 (2) TMI 1109 - DELHI HIGH COURT] casting obligation for making deduction of tax at source It becomes abundantly clear that the assessee entertained a bona fide belief that no tax withholding was required on lease rent payments. This belief, being a reasonable cause, for non deduction of tax at source in respect of lease rent payment, magnetizes the provisions of section 273B. Considering the provisions of section 271C read with section 273B, we hold that the penalty imposed u/s 271C is not sustainable. - Decided in favour of assessee
|