Mani Square Limited vs. ACIT, Range –2 (TDS)

Parties Involved

Facts Summary

The assessee, Mani Square Limited, did not deduct TDS on rent payments to M/s Bengal Chemical and Pharmaceuticals Limited, a government company, and did not collect TCS on scrap sales. The Assessing Officer imposed penalties under sections 271C and 271CA of the Income-tax Act, 1961. The Commissioner of Income Tax (Appeals) confirmed the penalties. The assessee appealed, arguing that it had a bona fide belief that the government company was exempt from TDS and TCS.…

Legal Issues

• 1. Whether the penalties imposed for non-deduction of TDS and non-collection of TCS were justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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