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2017 (2) TMI 555 - HC - Income TaxPenalty under Section 271C - non deduction of tds - assessee in default - Held that:- It is not in dispute that Assessee did not deduct interest and the reason given by Assessee was that in respect to Sahara premises, there was a revenue sharing agreement for the premises and services. Therefore, Assessee believed that tax at source was not deductible in such case. Commissioner of Income Tax (Appeals) (hereinafter referred to as "CIT(A)') accepted aforesaid explanation given by Assessee holding it to be a bonafide belief, though erroneous, and held that in view of fact that default was for bonafide belief, penalty under Section 271C of Act 1961 was not justified. It is not disputed before us that under Section 201(1A) interest for delayed payment of tax deducted at source has already been paid by Assessee. Since concurrent findings in respect of bonafide belief by Assessee in committing default have been recorded by authorities below and nothing has been shown to us that said findings are perverse, incorrect or otherwise illegal, we therefore, find no reason to interfere. - Decided in favour of Assessee.
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