No penalty for deduction of TDS at Lower Rate under wrong section

Jitendra Sharma Vs JCIT (Intl Taxation) (ITAT Indore)

ITAT Indore held that no penalty under Section 271C to be levied for deduction of tax under Section 194IA @1% instead of Section 195 @ 20.6% on purchase of property from Non Resident.

FULL TEXT OF THE ITAT JUDGEMENT

The above captioned appeals filed at the instances of the assessee(s) pertaining to Assessment Year 2015-16 are directed against the orders of Ld. Commissioner of Income Tax (Appeals)-13 (in short ‘Ld.CIT(A)’], Ahmedabad dated 24.04.2018 which are arising out of the order u/s 271C of the Income Tax Act 1961(In short the ‘Act’) dated 28.04.2017 framed by JCIT (Intl. Taxn.), Ahmedabad.

2. From perusal of the record we observe that common issue have been raised in all these three appeals relating to levy of penalty u/s 271(1)(c) of Act at Rs. 5,15,000/- in each case for the alleged wrong deduction of tax at source in the transaction of purchase of immoveable property. As grounds raised in all these three appeals are similar, for convenience we are reproducing below the grounds raised by Shri Jitendra Sharma in Appeal No.500/Ind/2018;

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