2024 (7) TMI 632

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.... dated 15.03.2021 passed u/s 271C of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by the JCIT, Range-73, Delhi (hereinafter referred as the Ld. AO). 2. In the case of the assessee company, on the basis of the information from ACIT, Circle 73(1), a verification was completed u/s 201(1)/201(1A) dated 30.03.2012 and it was observed that during the survey operations carried out at the premises of M/s Ambience Limited, it was found that the assessee is making payments towards directors sitting fees amounting to Rs. 6,80,000/- without deduction of TDS thereon. Further, the assessee has paid an amount of Rs. 10,89,200/- on account of transaction charges being professional payment without deduction of TDS in violation of secti....

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....action charges for Rs. 10,89,200/- resulting in a penalty of Rs. 68,000/- and Rs. 1,08,920/- respectively, totaling to Rs. 1,76,920/-. Sir, as regard to the deduction of TDS on sitting fees of the Directors as concerned, the assessee was under the bonafide belief that no TDS is required to be deducted on such payments. The view of the assessee also finds force that the amendment in the Section 194J(1)(ba) which clarifies that needs to be deducted on remuneration or fees to the Director of the company. The said Section was introduced in the Finance Act, 2012 with effect from 01st July 2012, which means that for F.Y. 2009-10, this position was not clear as to whether the assessee was supposed to deduct TDS on Directors sitting fee. This clear....