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2018 (6) TMI 94 - AT - Income TaxPenalty u/s 271C - Assessee in default u/s 201(1) - non deduction of tds - TDS u/s 194C OR 194J - Held that:- Isuue to be remanded to the file of the AO for verification of the transactions which are technical in nature, requiring deduction of tax at source u/s 194J of the Act and the services which require deductions u/s 194C of the Act. Therefore, the issues are set aside to the file of the AO for de novo verification and only in respect of the transactions which require the deduction of tax at source at a higher rate u/s 194J of the Act, shall the interest u/s 201(1A) shall be considered. Since the assessee has filed the certificates of the recipients with proof that the recipients have offered the income to tax in their hands, the assessee shall not be treated as an “assessee in default” u/s 201(1) of the Act. Since the assessee has not been treated as “an assessee in default” u/s 201(1) of the Act, the penalty u/s 271C are not sustainable as held by the Coordinate Bench of the Tribunal in the case of ACIT vs. M/s. Nexgen Educational Trust [ 2017 (11) TMI 191 - ITAT HYDERABAD] - Decided in favour of assessee.
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