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2017 (2) TMI 279 - HC - Income TaxPenalty under section 271C - failure to deduct tax at source - Held that:- As decided in each of the expatriate employees have paid directly the taxes due on the foreign salary by way of advance tax/self-assessment tax. The tax deductor-assessee was under a genuine and bona fide belief that it was not under any obligation to deduct tax at source from the home salary paid by the foreign company/HO and, consequently, we are of the view that in none of the 104 cases penalty was leviable under section 271C as the respondent in each case has discharged its burden of showing reasonable cause for failure to deduct tax at source. No penalty proceedings under section 271C shall be taken in any of these cases as the issue involved was a nascent issue. See Commissioner of Income-tax, New Delhi Versus Eli Lilly & Company (India) Pvt. Ltd. [2009 (3) TMI 33 - SUPREME COURT ] - Decided in favour of assessee.
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