TMI Blog2017 (2) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese appeals filed under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as Act 1961 ), by Revenue have arisen from judgment and order dated 18.12.2015 and 10.07.2015 passed by Income Tax Appellate Tribunal, Lucknow Bench ''B' Lucknow (hereinafter referred to as ''Tribunal ). They were admitted on following substantial questions of law: (a) Whether the ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as monthly fee/rental. 3. 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)') accepte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roneous, of non-liability to deduct tax at source and, therefore, the penalty imposed under section 271C of the I.T. Act, 1961 is not justified and is liable to be cancelled and the same is hereby cancelled and Grounds No. 1, 2 and 3 are allowed. (emphasis added) 4. Tribunal has also confirmed the aforesaid findings and held that penalty under Section 271C in aforesaid case is not justified. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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