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2015 (10) TMI 1859 - AT - Income TaxPenalty u/s 271C - non deduction of tax at source u/s 194A - CIT(A) deleted penalty levy - Held that:- No merit in the appeal of revenue. The ld. CIT(Appeals) found that in case of three of the societies, the assessee was not liable to deduct tax at source. In the case of Shri Aurobindo Society, the exemption certificate under section 80G(5)(vi) was also filed. It would, therefore, prove that assessee had a reasonable cause for failure to deduct tax at source under section 201(1) of the Act. The facts are identical in the case of State Bank of Patiala, Shimla (2015 (10) TMI 1745 - ITAT CHANDIGARH). Hon'ble Himachal Pradesh High Court dismissed departmental appeal finding no substantial question of law. These facts would clearly support the findings of ld. CIT(Appeals) that assessee had a genuine belief that it would not require to deduct tax at source. The case of the assessee, therefore, squarely falls under the provisions of Section 273B of the Act and penalty is not leviable because assessee is able to prove that there was a reasonable cause for the said failure. - Decided in favour of assessee.
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