https://www.taxtmi.com/caselaws?id=68524 Penalty under section 271C for failure to deduct tax at source on interest credited to trade creditors was held sustainable in principle, but not for the portion relating to three parties where the interest provision was later reversed and no interest ultimately remained payable. For that part, the assessee's bona fide belief and the absence of surviving liability supported exclusion from penalty. For the remaining credit entries, the TDS obligation arose at the time of credit under the amended Explanation to section 194A, so penalty remained exigible. The Deputy Commissioner was also held competent to levy the penalty under the provision then in force, resulting in partial relief by recomputation of the penalty amount. en-us Fri, 25 Jan 2002 00:00:00 +0530 Thu, 31 Mar 2011 09:48:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68524 Penalty under section 271C for failure to deduct tax at source on interest credited to trade creditors was held sustainable in principle, but not for the portion relating to three parties where the interest provision was later reversed and no interest ultimately remained payable. For that part, the assessee's bona fide belief and the absence of surviving liability supported exclusion from penalty. For the remaining credit entries, the TDS obligation arose at the time of credit under the amended Explanation to section 194A, so penalty remained exigible. The Deputy Commissioner was also held competent to levy the penalty under the provision then in force, resulting in partial relief by recomputation of the penalty amount. Case-Laws Income Tax Fri, 25 Jan 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68524