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2017 (3) TMI 258 - AT - Income TaxPenalty levied u/s 271C - failure to deduct tax at source u/s 194H/194J of the Act, towards commission payment - Held that:- The coordinate bench of ITAT, Visakhapatnam in assessee’s own case for the assessment years 2003-04 to 2005-06 as considered the issue in detail and held that transaction between the assessee and MMTC is not on principal to principal basis and hence the assessee is not liable to deduct TDS u/s 194H of the Act. Thus we are of the view that transaction between the assessee and M/s. MMTC is on principal to principal basis and hence the assessee is not liable to deduct TDS u/s 194H/194J of the Act. Since, we have already deleted the additions made by the A.O. u/s 201(1) & 201(1A) of the Act, consequent penalty levied u/s 271C of the Act for failure to deduct TDS cannot sustain in the eyes of law. Therefore, we direct the A.O. to delete penalty levied u/s 271C of the Act. - Decided in favour of assessee
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