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TMI Blog2017 (6) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... tated the facts of the case are that during the course of a survey operation conducted u/s. 133A of the Act for the verification of tax deducted at source. It was noticed that the assessee has made several payments where short deduction of TDS was found. 4. Taking a leaf out of this short deduction of tax penalty proceedings u/s. 271C were initiated alleging that the assessee defaulted in deducting tax at source and, therefore, is liable for the penalty. 5. Assessee strongly objected to the proposed levy of penalty stating that it was under a bona fide belief that provisions of section 194C applied on the impugned payments and have deducted tax at source accordingly. It was argued that merely because the revenue was of the opinion that pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section. Sec. 1941 was applicable to the impugned payment. 2 4,898/- Amount paid to Venu electrical & System for filtration of transformers. Sec. 194C was applicable and TDS was made under that section. Sec. 194J was applicable to the impugned payment. 3 29,738/- Amount paid to V- electrical for maintenance of gas analyser. Sec. 194C was applicable and TDS was made under that section. Sec. 194J was applicable to the impugned payment. 4 8,330/- Amount paid for pest control. Sec. 194C was applicable and TDS was made under that section. Sec. 194J was applicable to the impugned payment 5 40,395/- Amount paid for repair & maintenance to Gayatri engi. & foundry. Sec. 194C was applicable and TDS was made und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich can be safely accepted as a reasonable case for non-deduction of tax at source. 13. We further find that prior to the passing of the order u/s. 200(1) of the Act, the assessee has paid the differential amount of tax in the case of Padhiyar Hi-tech Engineering. This itself shows that there was no mala fide on the part of the assessee to willfully evade the provisions of the law. Section 273B of the Act provides that no penalty shall be imposable on the assessee for any failure referred to in the said provisions if he proves that there was a reasonable cause for the said failure. On the facts of the case, we find that there was a reasonable cause for the failure. We, therefore, find no error or infirmity in the findings of the ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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