No section 271C penalty for non-deduction of TDS due to Bonafide Belief

Ambience Private Limited Vs ITO (ITAT Delhi) The case of Ambience Private Limited vs ITO, adjudicated by ITAT Delhi, revolves around the imposition of a penalty under section 271C of the Income Tax Act, 1961. The central contention pertains to the non-deduction of TDS (Tax Deducted at Source) on payments made by the assessee company, leading to a thorough analysis by the authorities.  The crux of the matter lies in the failure of the assessee to deduct TDS on payments towards directors’ sitting fees and transaction charges categorized as professional payments, contravening section 194J ...