COMMISSIONER OF INCOME TAX Vs. BHARATI BT LTD

JUDGEMENT

(1.) THIS appeal is by the Revenue against the order passed by the Tribunal cancelling the penalty levied under s. 271C of the IT Act.

(2.) THE assessee was earlier known as Wipro BT Ltd. It is one of the companies associated with group Wipro Ltd. It had taken a premises on lease and paid rentals of Rs. 54,90,000 to Wipro Ltd. However, the assessee had failed to deduct tax at source under S. 194-I of the Act. Therefore, the AO proceeded to initiate penalty proceedings under S. 271C of the Act. The assessee did not file any reply to the show- cause notice issued. However, before the AO they contended that Wipro Ltd. had paid the entire tax. Therefore, it was under the impression that no TDS may be made. That apart, the assessee had incurred a huge loss and subsequently the rental payable was also waived.

(3.) LEARNED counsel for the Revenue contended that the cause shown by the assessee does not constitute sufficient cause so as to waive penalty under S. 273B and therefore, she su bmits the order of the Tribunal requires to be interfered with.