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2022 (3) TMI 77 - AT - Income TaxPenalty u/s 271C r.w.s 274(1) - assessee has not deducted TDS on certain expenses for which provision was created in its books of account - CIT(A) deleted the penalty levied by the JCIT u/s 271C - HELD THAT:- We do not find any infirmity in the order of the Ld. CIT(A) on this issue. The assessee during the course of hearing of penalty proceedings before the JCIT had categorically mentioned that in absence of receipt of actual invoices as in the last day of respective financial years, the amount of provision for expenses were based on estimates. In the absence of invoices and consequential liability to make the payment, the assessee did not withhold taxes on the said year end provision for expenses u/s 40(a)(i)/40(a)(ia) We find identical issue had come up before the Coordinate Bench of the Tribunal in the case of ITO vs DLF Southern Homes Pvt. Ltd. [2017 (12) TMI 1118 - ITAT DELHI] wherein under somewhat identical circumstances dismissed the appeal filed by the Revenue against the order of the ld.CIT(A) deleting the penalty levied u/s 271C held the controverted facts establish that because of the peculiarity of the circumstances involved in this matter, namely, at the time of creation of the provision for brokerage expenses, neither the names of the brokers nor the amounts to be paid to them on account of brokerage was a determinable owing to the fluid situation, due to which TDS was not practically feasible to be deducted by the assessee, and more particularly in view of the fact that the assessee neither claimed nor availed any benefit of the provision made for expenses and paid due tax in full, we are of the considered opinion that the findings of the Ld. CIT(A) that there is neither any tax evasion nor loss of revenue to the Government do not suffer any illegality or irregularity, and that this tribunal cannot interfere with the same - Also see M/S. TELCO CONSTRUCTION EQUIPMENT CO. LTD., BANGALORE [2014 (3) TMI 1016 - ITAT BANGALORE] Since, the Ld. CIT(A) while cancelling the penalty levied u/s 271C has given justifiable reasons, therefore, in absence of any distinguishable features brought to our notice by the Ld. DR to take a contrary view than the view taken by the Ld. CIT(A) on this issue on the basis of facts available on record, we do not find any infirmity in the order of the Ld. CIT(A). - Decided against revenue.
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