COMMISSIONER OF INCOME TAX (TDS) Vs. FOURWAYS INTERNATIONAL

JUDGEMENT

(1.) PASSED by the Tribunal, Delhi Bench 'D' ('Tribunal') in ITA Nos. 2945 and 2946/Del/2005 relevant for the asst. yrs. 2000 -01 and 2001 -02.

(2.) THE issue that arises in this case concerns the levy of penalty on the assessee under s. 271C of the IT Act, 1961.

(3.) THE assessee had made certain payments for fabrication charges but had not deducted the tax at source. The contention of the assessee was that it was not advised by its chartered accountant that it was liable to deduct tax at source under s. 194C of the Act. The assessee was a new firm, the partner was a matriculate and therefore depended entirely on the advice given by the chartered accountant. It appears that the chartered accountant did not correctly advise the assessee.