2017 (2) TMI 555

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....dent : Abhinav Mehrotra ORDER 1. Heard Sri Alok Mathur, learned counsel for appellant and Sri Abhinav Mehrotra, counsel for respondent. 2. All these appeals filed under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as "Act 1961"), by Revenue have arisen from judgment and order dated 18.12.2015 and 10.07.2015 passed by Income Tax Appellate Tribunal, Lucknow Bench '&#39....

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.... reasonable cause for failure to deduct tax at source despite the fact that the supplementary agreement made on 23.11.2006 clearly described the nature of payments as monthly fee/rental." 3. It is not in dispute that Assessee did not deduct interest and the reason given by Assessee was that in respect to Sahara premises, there was a revenue sharing agreement for the premises and services. There....

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....urce on account of the revenue sharing agreement. Thus, in view of the judicial pronouncement, there was reasonable cause on account of a bona fide belief, although erroneous, of non-liability to deduct tax at source and, therefore, the penalty imposed under section 271C of the I.T. Act, 1961 is not justified and is liable to be cancelled and the same is hereby cancelled and Grounds No. 1, 2 and 3....