TMI Blog2001 (10) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 5-11-1999 for assessment year 1995-96. The only ground raised in the appeal is against deletion of penalty of Rs. 86,238 levied under section 271C of the Income-tax Act, 1961 ( the Act ). 2. During the year under consideration, assessee had paid rent to ( i ) Oceanic Solven Industries, ( ii ) Shah Lajim P., ( iii ) Jamnagar Oil Seeds Crowers Regional Federation Ltd. and ( iv ) Arvind C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and levied the impugned penalty which is equivalent to the short deduction. 3. Commissioner (Appeals) on the other hand accepted the contentions of the assessee and deleted the penalty. 4. The ld. DR, relying on the order levying penalty, submitted that provisions of section 194-I are very clear and there cannot be any reason for any confusion. Therefore, the penalty was rightly levied an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provision was there and the rent paid exceeded the sum of Rs. 1,20,000, tax had to be deducted on the whole of such rent paid or credited. Assessee had the benefit of an expert not to get confused over this provision of law. However, the issue whether warehousing charges constituted rent or not did pose a problem and created confusion. It raised certain legal issues, so much so that CBDT had to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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