#section 271c

Penalty u/s 271C cannot be levied where assessee was under bonafide belief that TDS is not deductible

Facts of the case-In this case it was informed that the assessee has not deducted the tax at source as required under the provisions of  Chapter XVII-B of the Income Tax Act. The Assessing Officer levied penalty under section 271C of the Income Tax Act for a sum of Rs.40,254/- vide separate order. The assessee submitted before the learned CIT (Appeals) that he was under bonafide belief that TDS…