9911796707
TMI Blog2011 (1) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... it was noticed by the AO that during the relevant period, it had paid ₹ 2,40,000/- as godown rent to one Khodidas Reghuandandas Family Trust without deduction of tax at source. In view of this, the AO issued show cause notice as to why the penalty under Section 271C should not be levied on it for non-deduction of tax at source. The assessee explained that it had paid rent to Khodidas Raghunandandas Family Trust. The said trust was a private trust through a Will for the benefit of beneficiaries specified in the Will. Since, the property was jointly held by co-owners i.e. beneficiaries of the trust, the assessee was under the bona fide belief that in spirit of provisions of section 26 of the IT Act, share of payment of each individual b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levied under Section 201(1A) was also paid, therefore, no penalty is to be levied in the matter. He also referred to the details of the taxes paid by the payee, which is reproduced at page no.3 of the penalty order. The learned counsel for the assessee therefore submitted that the assessee has reasonable cause for failure to comply with the provisions of law. On the other hand, the learned DR, relied upon the orders of the authorities below. 6. We have considered the rival submissions and material available on record. Section 273B of the IT Act provides that no penalty be imposed under Section 271C of the IT Act on the person or the assessee, as the case may be, for any failure referred to in the said provisions, if he proves that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment to these employees outside India. However, the same was not reflected in the return nor were the taxes deducted at source. On notice being issued, the assessee filed revised computation for different periods showing the amount paid to the employees in Japan. The assessee also paid short deduction of tax. Thereafter, proceedings under section 271C of the Incometax Act, 1961, were initiated. The Tribunal found that the assessee had paid the tax along with interest voluntarily and there existed a bona fide belief that tax was not deductible at source. On appeal: held that the finding of the Tribunal was a finding of fact. The Tribunal was justified in deleting penalty. No substantial question of law arose from its order. Considerin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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