TMI Blog2015 (10) TMI 1745X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has a genuine belief that assessee was not required to deduct tax then penalty u/s 271C of the Act was not liable. Therefore, we find nothing wrong with the order of Ld. CIT(A) and we confirm the same. - Decided in favour of assessee. - ITA Nos.269 to 271/CHD/2014 - - - Dated:- 20-5-2014 - SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER For the Appellant : Shri J.S. Kahlon For the Respondent : Shri Vishal Mohan ORDER PER BENCH The appeals preferred by the Revenue are against the order dated 29.11.2013 of CIT (Appeals), Shimla. 2. In all these appeals the Revenue has raised the identical ground which is as under:- 1. That the Ld. CIT(A) has erred in law in deleing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,79,270/- was paid by the bank alongwith the interest as per direction of the Assessing Officer. Therefore, it cannot be said that assessee has committed any default. Further, it was stated that section 194A was not applicable in the case of H.P. Society for Promotion of IT E Governance (SITEG). In this regard, reliance was placed on the decision of the CIT(A) Vs. State Bank of Patiala, Chota Shimla. This decision has been confirmed by the Chandigarh Bench of the in ITA Nos. 1306 1307/Chd/2012. The Ld. CIT(A) following these orders deleted the penalty. 5. Before us, Ld. DR strongly supported the order of Assessing Officer. 6. On the other hand, the Ld. Counsel for the assessee submitted that in case of ITO v State Bank of Patiala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used only for the purpose of a particular project, there was no reason to deduct the tax because such Societies are being funded by the Govt. on 100% basis. The notification issued by the Central Govt. u/s 194A mentions various societies and the entry at Sr. No. 40 stipulates as under:- Any undertaking or body including a Society registered under the Societies Registration Act, 1860 (XXI of 1860) financed wholly by the Government 10. This would show that Societies which are being wholly funded by the Govt. would qualify for non-deduction of tax. It has not been disputed before us that the said Societies are not wholly financed by the Central Govt. In view of this, we find nothing wrong with the order of Ld. CIT(A) and we confirm the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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