No penalty for Failure to deduct TDS due to Wrong Classification of Payments

M/s P.S.R. Associates Vs. The JCIT (ITAT Visakhapatnam) The assessee has not deducted the TDS on sub contract payments amounting to Rs. 38,12,952/- on which the penalty was imposed by the JCIT and confirmed by the Ld.CIT(A). The assessee has deducted the TDS on all the payments, except short deduction and non deduction to the extent of payments included in the purchase account, there was no other default in respect of complying the provisions of TDS by the assesse and this fact was not disputed by the AO. The AO also did not treat the assessee as assessee in default u/s 201(1) and 201(1A) of I...