No Section 271C Penalty is absence of contumacious conduct by assessee

Sarv Estate Pvt. Ltd Vs JCIT (ITAT Delhi) The issue under consideration is whether the Ao is correct in levying penalty u/s 271C for failure to deduct tax at source u/s 194C on payment of external development work charges (EDC)? In the present case, assessee was a private limited company engaged in the business of real estate development in the State of Haryana. During the assessment, AO had levied penalty under section 271C on the ground that assessee had not deducted TDS from EDC paid to HUDA under section 194C. ITAT states that, under the facts and circumstances it was clearly borne out tha...