The Income Tax Appellate Tribunal ruled that non-deduction of ...

Non-deduction of TDS on directors' fees & transaction charges not liable for penalty. Payments to directors allowed. Bona fide belief on transaction charges.

Case Laws     Income Tax

July 12, 2024

The Income Tax Appellate Tribunal ruled that non-deduction of TDS on directors' fees and transaction charges u/s 194J was not liable for penalty u/s 271C. It accepted the assessee's contention that payments to directors on account of sitting fees were allowable. Regarding transaction charges, the assessee had a bona fide belief that they were not covered u/s 194J(1)(ba), as there is no such head. Consequently, non-deduction of TDS was not justified for imposing penalty. The assessee's appeal was allowed.

View Source