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2019 (10) TMI 1059 - AT - Income TaxPenalty u/s 271C - No deposit of TDS on the rent-free accommodation provided to the employees - limitation of order passed by the A.O. which was alleged to be beyond limitation period - HELD THAT:- Non-deduction of TDS has not resulted into any kind of benefit to the assessee, the non-deduction was only due to bonafide belief of the assessee. Further, that perquisite is taxable in the hands of employees, hence neither assessee get benefitted nor the employees. The TDS alongwith interest under consideration was also immediately deposited. As found that the assessee was deducting TDS from salary without including perquisite in form of rent free/concessional accommodation, therefore, it is a case of short deduction of TDS. The assessee was not willfully disobedient to the authority otherwise assessee would not have deducted TDS on entire salary being issue under consideration is just one item forming part of salary or any other payment It is also clear from the record that the assessee has compiled the TDS provision on almost all payments or heads except not including said perquisite in form of rent free accommodation in salary due to bonafide belief, which itself shows that assessee is law abiding and not having contumacious conduct, hence penalty should not be sustained In view the provisions of Section 273B of the Act, hold that there was a reasonable cause for the failure of the assessee, therefore, no penalty should be imposed - There is no merit in penalty so imposed U/s 271C - Decided in favour of assessee
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