COMMISSIONER OF INCOME TAX Vs. DENSO INDIA LTD

JUDGEMENT

(1.) The Income Tax Appellate Tribunal has while deleting the penalty levied upon the respondent-assessee placed reliance upon the previous orders passed by it in the cases of Metsui and Marobeni Corporation. Ms. Bansal, counsel appearing for the appellant does not dispute that the said previous orders in those cases when assailed before this court in appeal were affirmed.

(2.) In the circumstances, therefore, and keeping in view the fact that the Tribunal and this Court have in similar other cases involving non- deduction of tax from the salaries paid to expatriate employees in countries outside India held that the failure to make the deduction at source was for a reasonable cause, we see no reason to interfere. Following the view taken by this Court in the cases mentioned above and the orders passed in ITA No. 395/2005 and connected matters decided on 22nd March, 2006, these appeals fail and are accordingly dismissed.