Held, that the depositor had been formed by an Act of the State Legislature and was a non-taxable entity. Hence no penalty was leviable on the assessee-bank under section 271C. (AY. 2013-14, 2014-15)
Yes Bank Ltd. v. Add. CIT (TDS) (2023)101 ITR 13 (SN) (Dehradun) (Trib)
S. 271C : Penalty-Failure to deduct at source-Interest payable to Uttarakhand Environment Protection and Pollution Control Board on FDs with the assessee-Board not a taxable entity, established under Central Act-Penalty not leviable. [S.194A(3), Notification No. S. O. 3489(E), Dated 22-10-1970.]