Penalty u/s 271C justified for non-deduction of TDS on non-compete fee with no reasonable cause for non-deduction

M/s. Ushodaya Enterprises Vs. DCIT (TDS) (ITAT Hyderabad)

We find that the requirement to make the payment and the genuineness of the payment of non-compete fee by the assessee to Shri Ramoji Rao (HUF) has been adjudicated by the Tribunal in the assessee’s own case for A.Y 2008-09 and the contention of the assessee that the non-compete fee is the business expenditure of the assessee has been upheld. The assessee has always contended that it is its business expenditure and therefore, it was required to deduct

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