https://www.taxtmi.com/caselaws?id=446896 ITAT Jaipur deleted penalty u/s 271C for non-deduction of TDS u/s 195 on software payments to USA companies. AO treated payments as royalty and made addition u/s 40(a)(i). Assessee argued payments were not taxable in India due to absence of PE and agency agreement. ITAT found reasonable cause existed for non-deduction as assessee acted in bonafide belief. Since revenue effect was neutral after disallowance and subsequent allowance as deduction, and there was no deliberate inaction or contumacious conduct, penalty was deleted. Decision favored assessee. en-us Wed, 22 Nov 2023 00:00:00 +0530 Wed, 13 Dec 2023 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446896 ITAT Jaipur deleted penalty u/s 271C for non-deduction of TDS u/s 195 on software payments to USA companies. AO treated payments as royalty and made addition u/s 40(a)(i). Assessee argued payments were not taxable in India due to absence of PE and agency agreement. ITAT found reasonable cause existed for non-deduction as assessee acted in bonafide belief. Since revenue effect was neutral after disallowance and subsequent allowance as deduction, and there was no deliberate inaction or contumacious conduct, penalty was deleted. Decision favored assessee. Case-Laws Income Tax Wed, 22 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446896