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2023 (8) TMI 1068 - AT - Income TaxLevy the penalty u/sec. 271C - non deduction of TDS on harvesting charges - HELD THAT:- Harvesting charges forms part of the purchase price of sugar cane payable to the farmer by the assessee-company and it is well settled law that there is no obligation to deduct tax at source on the purchase of goods. In view of the above settled legal position, we cannot doubt the plea of the assessee-respondent that it had entertained a bonafide belief that no tax is required to be deducted on harvesting charges. CIT(A) has rightly deleted the penalty as it entertained a bonafide belief that no tax is required to be deducted at source on harvesting charges. Appeal filed by the Revenue stand dismissed.
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