Mumbai ITAT deletes penalty levied u/s 271C for non-deduction of Sec 195 TDS on payments to non-residents for engineering and draughting services and for purchase of shrink wrapped software, grants immunity u/s 273B; 

Observes that assessee did not deduct TDS relying upon CA’s certificate u/s 195; Further, accepts assessee’s stand that the issue regarding TDS liability on  engineering services payment owing to the ‘make available condition’ was debatable in light of contradictory views taken by various HCs and ITATs, similarly  acknowledges huge controversy over software payments;  

Rules that “view adopted by the assessee based upon the certificate of the C.A., was one of the possible views and can be said to be based upon bonafide belief of the assessee”, thus holds existence of reasonable cause as envisaged u/s 273B for not deducting TDS; Dismisses Revenue’s stand that argument of ‘debatable issue’ was not available to assessee as it did not challenge order u/s 201 holding assessee in default for not deducting TDS and accepted the same: ITAT