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TMI Blog2024 (7) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act as there is no such head in this section. Thereby not deducting the TDS seems to be out of bonafide belief. Imposition of penalty is thus not justified. Appeal of the assessee is allowed. - Dr. B.R.R. Kumar, Accountant Member And Shri Anubhav Sharma, Judicial Member For the Assessee : Shri Anand Chaudhuri, Advocate For the Revenue : Shri Amit Katoch, Sr. DR ORDER PER ANUBHAV SHARMA, JM: This appeal preferred by the assessee is against the order dated 25.03.2022 of the Commissioner of Income-tax (Appeal)-27, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. FAA ) in appeal No.CIT(A), Delhi-27/10074/2009-10 arising out of an appeal before it against the order dated 15.03.2021 passed u/s 271C of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord and in disregard of settled law, the ld.CIT(A) erred in confirming the penalty of Rs. 1,08,920/- on account of Professional charges for not deducting tax at source u/s 194J of the Act. 3. The appellant craves leave to add, alter, amend or vary any of the above grounds during the pendency of the appeal. 3. Heard and perused the record. The plea of the assessee is similar to that raised before the ld.CIT(A) and we consider it appropriate to reproduce the same conveniently from the order of ld.CIT(A):- The Ld. A.O. has imposed a penalty u/s 271C of the Income Tax Act for non deduction of TDS on Directors fee amounting to Rs. 6,80,000/- and transaction charges for Rs. 10,89,200/- resulting in a penalty of Rs. 68,000/- and Rs. 1,08,920/- r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef that there is no category of TDS under which this transaction would fall and hence the assessee did not deduct the TDS. It will not be out of place to mention that the payee did pay the entire taxes on all the transaction charges received from the assessee in their respective tax returns. For the sake of brevity, we are not repeating the detailed submission as referred to in preceding paragraphs which clearly establishes that the assessee has a reasonable cause for not deducting the TDS as per the provisions of Section 273B of the Income Tax Act. 4. After considering the explanation given by the assessee in regard to the Transaction charges which the tax authorities have considered as Professional charges paid to directors falling in lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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