https://www.taxtmi.com/caselaws?id=71309 The Tribunal ruled in favor of the assessee, deleting the penalty imposed under section 271C for failure to deduct tax at source under section 194A on interest payments to Larsen & Toubro Ltd. The Tribunal considered the assessee's bona fide belief and reliance on legal advice as reasonable cause for non-deduction, emphasizing the nature of advice over the recipient. Despite the deductee discharging the primary tax liability, the Tribunal held that the penalty was not justified due to the debatable nature of the issue and the assessee's genuine belief, as per the Supreme Court's decision in T. Ashok Pai vs. CIT. en-us Fri, 28 Mar 2008 00:00:00 +0530 Wed, 10 Apr 2019 12:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71309 The Tribunal ruled in favor of the assessee, deleting the penalty imposed under section 271C for failure to deduct tax at source under section 194A on interest payments to Larsen & Toubro Ltd. The Tribunal considered the assessee's bona fide belief and reliance on legal advice as reasonable cause for non-deduction, emphasizing the nature of advice over the recipient. Despite the deductee discharging the primary tax liability, the Tribunal held that the penalty was not justified due to the debatable nature of the issue and the assessee's genuine belief, as per the Supreme Court's decision in T. Ashok Pai vs. CIT. Case-Laws Income Tax Fri, 28 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71309