https://www.taxtmi.com/caselaws?id=70848 Penalty under section 271C for alleged short deduction of tax at source on gratuity payments was held unsustainable where the assessee relied on the exemption framework under section 10(10) of the Income-tax Act, 1961 and applied the prescribed ceiling while deducting tax. The Board's Circular No. 138 of 17-6-1974 recognised gratuity received under section 4(5) of the Payment of Gratuity Act, 1972 as falling within the residuary exemption under section 10(10)(iii), subject to the notified limit. As no material showed that the assessee's estimate was not bona fide or that any short deduction was deliberate or mala fide, penalty was not leviable. en-us Fri, 23 Sep 2005 00:00:00 +0530 Tue, 19 Apr 2011 16:33:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70848 Penalty under section 271C for alleged short deduction of tax at source on gratuity payments was held unsustainable where the assessee relied on the exemption framework under section 10(10) of the Income-tax Act, 1961 and applied the prescribed ceiling while deducting tax. The Board's Circular No. 138 of 17-6-1974 recognised gratuity received under section 4(5) of the Payment of Gratuity Act, 1972 as falling within the residuary exemption under section 10(10)(iii), subject to the notified limit. As no material showed that the assessee's estimate was not bona fide or that any short deduction was deliberate or mala fide, penalty was not leviable. Case-Laws Income Tax Fri, 23 Sep 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70848