| |
| The Tax Publishers2020 TaxPub(DT) 3232 (Mum-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where disallowance was made for non-deduction of tax at source on rent payment made by assessee but genuineness of such payment was not in doubt, the penalty under section 271(1)(c) could not be attracted.
|
Penalty under section 271(1)(c) - Leviability - Disallowance on account of non-deduction of tax at source on rent payment made by assessee -
AO made disallowance under section 40(a)(ia) for non-deduction of tax on rent payment made by assessee-company. Subsequently, he levied penalty under section 271(1)(c) on account of such disallowance.Held: It was found that assessee paid the amount of TDS along with interest. Further, simply for the reason of non-deduction of tax at source, disallowance could be made but it would not attract penalty provisions under section 271(1)(c). Moreover, since disallowance was made for non-deduction of tax at source on rent payment made by assessee but genuineness of such payment was not in doubt, the penalty under section 271(1)(c) could not be attracted.
REFERRED : CIT v. Venus Engineers [Tax Appeal No. 1292 of 2010, dt. 29-8-2011] and ITO v. Shri Vishal Madhusudanbhai Chokshi [ITA No 62/A/2013, dt. 5-7-2013].
FAVOUR : In assessee's favour.
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 271(1)(c)
 SUBSCRIBE FOR FULL CONTENT
|