https://www.taxtmi.com/caselaws?id=119563 The Tribunal upheld the decision to cancel the penalty imposed under section 271C for failure to deduct tax at source under sections 194C and 194H of the Income-tax Act, 1961. The respondent, a partnership firm acting as clearing and forwarding agents, was found to have a reasonable cause for not deducting TDS as it was acting as an intermediary without an implied contract with the airlines. The Tribunal considered the nature of the transactions, the belief held by the respondent, and uncertainties regarding tax liabilities under the DTAA, leading to the dismissal of all appeals by the Revenue. en-us Fri, 09 Mar 2007 00:00:00 +0530 Wed, 11 Jul 2012 17:54:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119563 The Tribunal upheld the decision to cancel the penalty imposed under section 271C for failure to deduct tax at source under sections 194C and 194H of the Income-tax Act, 1961. The respondent, a partnership firm acting as clearing and forwarding agents, was found to have a reasonable cause for not deducting TDS as it was acting as an intermediary without an implied contract with the airlines. The Tribunal considered the nature of the transactions, the belief held by the respondent, and uncertainties regarding tax liabilities under the DTAA, leading to the dismissal of all appeals by the Revenue. Case-Laws Income Tax Fri, 09 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119563