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2015 (10) TMI 2108 - AT - Income TaxPenalty levied under S.271C - non deduction of TDS - CIT(A) deleted penalty levy - Held that:- The provisions of S.271C are subject to the provisions of S.273B of the Act. As per S.273B of the Act, no penalty shall be leviable under the sections mentioned therein, if the assessee proves that there was a reasonable cause for the failure under the said provisions. In the present case the assessee has submitted an explanation for the defaults alleged against it, and even a perusal of the orders under S.201(1) and 201(1A) make it clear that the Assessing Officer has summarily raised the demands. It appears that assessee's explanation was not called for or was not considered in detail. From the narration of the assessee's explanation as given above, as find that most of the expenses like lorry hire charges, truck operating expenses, business promotion expenses, postage expenses etc. are not subject to TDS provisions. As regards the other payments, the assessee's explanation that it bona-fidely believed that the TDS provisions are not applicable to the assessee seems to be reasonable. In view of the same, find no reason to interfere with the order of the CIT(A) on this issue, particularly, as also there is no loss to the Revenue, as observed by the CIT(A) since the assessee has remitted the TDS from its own sources and the payees have also not claimed the credit for the same. - Decided in favour of assessee.
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