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| The Tax Publishers2020 TaxPub(DT) 2147 (Jp-Trib) INCOME TAX ACT, 1961
Section 271C
Since assessee bank relied on declaration furnished by depositors there was reasonable cause for non-deducting from interest paid to them and in the absence of mala fide on assessee's part, no penalty could be levied under section 271C.
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Penalty under section 271C - Non-deduction of tax at source - Interest paid by bank to depositors without TDS relying on relying on declaration submitted by depositors in Form No. 15G/15H -
Assessee bank paid interest to depositors without deducting tax. AO levied penalty under section 271C on this count. Assessee challenged imposition of penalty raising the plea that it had acted in good faith, bona fide belief and without any mala fide intention in relying on declaration submitted by depositors in Form No. 15G/15H. Held: Since assessee bank relied on declaration furnished by depositors there was reasonable cause for non-deducting TDS and no mala fide was reflected in action of assessee bank in not deducting TDS and thus assessee could not be fastened with the penalty under section 271C.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, JAIPUR BENCH
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