The Appellate Tribunal considered a case involving penalty u/s ...

Appellate Tribunal cancels penalty for non-filing tax return, citing error by deductor as the TDS was deductible at source u/s 195.

Case Laws     Income Tax

June 26, 2024

The Appellate Tribunal considered a case involving penalty u/s 271(1)(C) for non-filing of income tax return despite taxable income and interest income. Assessee disclosed income upon receiving notice u/s 148, rectified tax discrepancy, and paid balance tax. The Tribunal noted the applicability of special provisions for non-resident assessee and held that penalty was unjust as error was on deductor's part as the TDS was deductible at source u/s 195. Citing legal precedents, the Tribunal emphasized that absence of due care does not imply deliberate concealment. The Tribunal ruled in favor of the assessee, highlighting that penalty imposition was incorrect.

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