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2012 (2) TMI 8 - DELHI HIGH COURTPenalty u/s 271(1)(c) dis-allowance of expenses on ground of non-deduction of tax at source u/s 40(a)(i) Tribunal deleted the penalty levied by A.O. on ground that assessee has been able to justify and discharge the onus under Explanation 1 to Section 271(1)(c) - A.Y. 2000-01 Held that:- In present case, assessee had contended that Section 40(a)(i) was not applicable as the words used were tax has been paid or deducted‟. It is possible to submit that the amendment which came in 2004 was clarificatory in nature, but this is different from stating and holding that the assessee could not have raised the said plea or argued that the dis-allowance under the pre amended Section 40(a)(i) was not justified or mandatory. It is undisputed that TDS has been deducted and paid in the next A.Y. Assessee can in the penalty proceeding show and explain that interpretation was plausible and had merit, though was not accepted. Order of Tribunal deleting penalty is justified Decided against the revenue.
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