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2016 (2) TMI 1205 - AT - Income TaxPenalty u/sec. 271(1)(c) - non-deduction of tds - disallowance of commission/professional charges and accountancy charges u/s 40(a)(ia) for default of non-payment of TDS - Held that:- As consider the dicta the preposition rendered by ITAT Delhi SMC-1 Bench in the case of M/s Syndicate Labels Vs. ACIT [2015 (10) TMI 2745 - ITAT DELHI] it is ample clear that in a situation when disallowance has been made under section 40(a)(ia) for non deduction of tax at source from payments made or credited to the respective payees and the assessee made a proper disclosure about the expenses claimed by it as deduction which was neither bogus nor otherwise non deductible then penalty under section 271(1)(c) of the Act is not validly imposable - AO is directed to delete the impugned penalty imposed under section 271(1)(c) - decided in favour of assessee.
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