TMI Blog2005 (4) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Japan for the service rendered to the Indian Company. The assessee Company was not taking into account the salary income they paid in Japan, for the purposes of deduction of tax from salary under section 192 of the Income-tax Act, 1961 (for short the Act ). After persistent queries and demands taxes were paid on additional salary income received in Japan from expatriate employees which were rendering services in India initially to the liaisoning office of Hitachi Ltd., Japan and subsequently to Hitachi India Trading Pvt.Ltd. The Assessing Officer vide letter dated 11-12-1998 worked out the details of amount short deducted by the assessee. A show cause notice dated 14-6-2000 was issued. The assessee made certain submissions in reply the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant to comply with the provisions of section 192 of the Act and as such no penalty was leviable in view of the provisions of section 273B of the Act, the Tribunal recorded the following findings :- 24. The appellant in the present case fully satisfies all the parameters laid down by the Hon ble High Court in the case of Azadi Bachao Andolan (supra). Even on this basis, the penalty levied on the appellant deserves to be cancelled as it would amount to treating the appellant on a different footing than the other Japanese companies which are similarly placed and who have not been proceeded against by the Revenue. 25. We, therefore, hold that the appellant is not liable for penalty under section 271C for not deducting tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, the Bench also noticed that whether there was reasonable cause or not for the assessee not to deduct tax at source, is a question of fact which has to be determined by the Tribunal and normally would not give rise to a question of law. With respect, we would adopt the reasoning of the Division Bench in the Itochu Corpn. s case (supra). In the present case, the Tribunal has come to a finding of fact that the reasonable cause can be reasonably said to be a cause which prevents a man of average intelligence and ordinary prudence, acting under a normal circumstances without negligence or inaction or want of bona fide. It then recorded a definite finding that the act on the part of the assessee was bona fide and it acted under a reasonable be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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