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 the tax at source u/s 194J of the Act. For failure to deduct the tax inspite of bein...