ITAT upheld deletion of penalties under s271(1)(c) and s270A ...

Penalties Deleted Under Section 271(1)(c) and 270A as TDS Non-Deduction on EDC Payments Found Non-Malicious

March 1, 2025

Case Laws Income Tax AT

ITAT upheld deletion of penalties under s271(1)(c) and s270A regarding non-deduction of TDS on External Development Charges paid to HUDA. While assessee did not contest the s40(a)(ia) disallowance, they provided reasonable explanation that legal clarity was lacking on TDS applicability to EDC payments at the relevant time. No evidence suggested non-genuine payments or income concealment. Mere non-compliance with TDS provisions does not constitute concealment or furnishing inaccurate income particulars. Making incorrect legal claims does not amount to providing inaccurate details, following Reliance Petroproducts precedent. CIT(A)'s order deleting both penalties was upheld, ruling in assessee's favor.

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ITAT upheld deletion of penalties under s271(1)(c) and s270A ...

Penalties Deleted Under Section 271(1)(c) and 270A as TDS Non-Deduction on EDC Payments Found Non-Malicious

March 1, 2025

Case Laws Income Tax AT

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