TDS Penalty Void if Assessee Added Back Non-Deducted Tax Expense

ACIT Vs TV Today Network Ltd (ITAT Delhi) Introduction: In a case between ACIT and TV Today Network Ltd, the ITAT Delhi has made a landmark judgment. The court has ruled that the penalty for failure to deduct TDS (Tax Deducted at Source) is not applicable if the assessee has added back the expense on which the tax was not deducted. The decision comes as a notable shift in the understanding of tax deduction regulations. Analysis: During the scrutiny of the case, the AO (Assessing Officer) noticed that the assessee had added back a disallowance in the computation of income related to an expendit...