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2019 (7) TMI 601 - AT - Income TaxLevying penalty u/s 271C - failure to deduct tax at source u/s 194H - reasonable cause for non deduction of TDS - HELD THAT:- The issue on which the penalty u/s 271C is imposed is debatable as different courts have taken diverse views. Therefore, the fact remains that the assessee has reasonable cause for non deduction of tax at source on the discount allowed to the prepaid distributor as there are decisions of the Hon’ble High Courts and Tribunal taking diverse views. Thus, it is contesting issue and the assessee has reasonable cause not to deduct the tax at source. Therefore, the action of non deduction of tax in the present case will not attract the penalty u/s 271C. Since this issue is decided in case of assessee’s own case for earlier assessment years the same will be followed. - Appeals of the assessee are allowed.
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