No section 271C Penalty if TDS duly deducted & remitted at year end

ITO (TDS) Vs Om Sai Ram Enterprises Ravulapalem (ITAT Visakhapatnam) The issue under consideration is whether the penalty levied u/s 271C is justified in law? In the present case, assessee awarded contract work and at the same time, it also supplied material to the contractor. Revenue found that the assessee passed the entries for supply of materials/payments from time to time without making TDS as required under section 194C. Accordingly, Revenue initiated penalty proceedings under section 271C for assessee’s failure to deduct tax at source and remittance to Government account. ITAT states ...