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2021 (9) TMI 587 - AT - Income TaxPenalty u/s 271C - default due to late deposit of TDS - bonafide belief or not - only explanation for non-deduction of tax by the assessee is that the amount paid to M/s. Haryana Ware Housing Corporation was booking advance for the space - HELD THAT:- As stated that under the bonafide belief that no tax is liable to be deducted on such amount, the assessee did not deduct tax. When it came to the notice of the assessee, the entire amount alongwith interest thereon was duly deposited with the Government account. As argued that there is no loss of revenue hence, penalty u/s 271C ought not to have been imposed and sustained by the CIT(A). As argued that the assessee has demonstrated bonafide reason for non-deduction of tax, therefore, authorities below ought not to have imposed the penalty in terms of section 273B - assessee has also placed reliance on Hindustan Coca Cola Beverages Pvt.Ltd. [2007 (8) TMI 12 - SUPREME COURT] to buttress the contention where the assessee has deposited tax and interest thereon and disclosed the income in the return of income, no disallowance is called for - as further stated that Haryana Ware Housing Corporation has also disclosed this income and due taxes have already been paid. As coupled with the fact that due taxes alongwith interest thereon, have been deposited in the Government account. This fact is not controverted by the Ld. Departmental Representative - the assessee has demonstrated the bonafide for non-deducting the tax. We, therefore, direct the Assessing Officer to delete the penalty imposed u/s 271C - Appeal decided in favour of assessee.
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