https://www.taxtmi.com/caselaws?id=331438 The court ruled in favor of the appellant, a subsidiary of a German company, in a tax penalty case under section 271C of the Income-tax Act, 1961. The court found that the appellant acted in good faith and had a genuine belief that tax deduction was required only upon specific agreements for service charges. It was noted that the appellant voluntarily paid TDS before any Departmental proceedings, indicating a bona fide belief. The court emphasized that the penalty under section 271C applies only when there is no good and sufficient reason for not deducting tax at source. The appeal was dismissed, and no costs were awarded. en-us Thu, 04 Aug 2016 00:00:00 +0530 Tue, 23 Aug 2016 14:39:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331438 The court ruled in favor of the appellant, a subsidiary of a German company, in a tax penalty case under section 271C of the Income-tax Act, 1961. The court found that the appellant acted in good faith and had a genuine belief that tax deduction was required only upon specific agreements for service charges. It was noted that the appellant voluntarily paid TDS before any Departmental proceedings, indicating a bona fide belief. The court emphasized that the penalty under section 271C applies only when there is no good and sufficient reason for not deducting tax at source. The appeal was dismissed, and no costs were awarded. Case-Laws Income Tax Thu, 04 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331438