2019 (9) TMI 686 - ITAT DELHI - Income Tax

Head Note / Extract:
Penalty proceedings u/s 271C - TDS u/s 194C on payment of external development work charges ('EDC') - reasonable cause for non-deduction of tax at source by the assessee company - HELD THAT:- We find that under the facts and circumstances it is clearly borne out that assessee did had bonafide reason for not deducting the TDS. Firstly, for the reason that the license was granted by DTCP which is a Governing authority and it has clarified that EDC charges are paid to HUDA; and secondly, DTCP has issued a clarification to the effect that no TDS is required to be deducted precisely. Precisely on similar set of facts, this Tribunal in the case of RPS Infrastructure Ltd. vs ACIT [2019 (9) TMI 39 - ITAT DELHI] has deleted the penalty - No penalty is leviable u/s 271C and same is directed to be deleted. - Decided in favour of assessee.