9911796707
TMI Blog2025 (3) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... Shrivastava - Ld. Sr. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeals by assessee for Assessment Years (AY) 2012- 13 & 2013-14 assails imposition of penalty u/s 271C for want of short deduction of tax on LFC reimbursements to its employees. Having heard rival submissions and upon perusal of case records, the appeals are disposed-off as under. First, we take up appeal for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the assessee was not exempt and liable for TDS. Consequently, impugned penalty was levied for Rs. 1.67 Lacs u/s 271C for want of any satisfactory explanation from the assessee. 3. During the appellate proceedings, it was submitted that assessee paid LFC / LTA to its employees and LFC was granted for domestic travel. Under the package, the employees visited foreign places en-route to the desi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yees would be entitled for exemption of Sec. 10(5) when the designated place was in India. There was no intention / motive either to defy the position of law or to evade any tax. Reference was made to the decision of Hon'ble Supreme Court in the case of Pricewaterhouse Coopers P. Ltd (25 Taxmann.com 400) holding that imposition of penalty was not warranted since the assessee had committed an inadv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the Hon'ble High Court of Madras granted interim order favoring the assessee. Finally, the issue has been put to rest by Hon'ble Apex Court holding that the assessee would be required to deduct TDS on such reimbursements. On these facts, it could very well be said that deduction of TDS on impugned reimbursements was not free from doubt and it was a debatable issue which has ultimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already been stated that the assessee was not aware of order dated 26-08-2021 passed u/s 271C. The order was received only on 08-05-2024 upon persistent efforts by the assessee. Considering the possibility of communication gaps at various levels in faceless regime, the delay should have been condoned by Ld. CIT(A). Nevertheless, the impugned penalty stand deleted and the appeal stand allowed. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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