https://www.taxtmi.com/caselaws?id=121503 Penalty for failure to deduct tax at source was held unsustainable where interest was deducted and paid on actual payment, and the dispute concerned only the timing of deduction at the credit stage. The analysis treated the issue as debatable under the mercantile system because the right to receive interest arose on maturity under the deposit schemes, and the assessee's view that immediate deduction was not required was found bona fide. With no dispute about actual deduction and remittance of tax, the explanation constituted reasonable cause and took the case outside penal consequences. en-us Fri, 20 Mar 2009 00:00:00 +0530 Tue, 31 Jul 2012 11:51:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121503 Penalty for failure to deduct tax at source was held unsustainable where interest was deducted and paid on actual payment, and the dispute concerned only the timing of deduction at the credit stage. The analysis treated the issue as debatable under the mercantile system because the right to receive interest arose on maturity under the deposit schemes, and the assessee's view that immediate deduction was not required was found bona fide. With no dispute about actual deduction and remittance of tax, the explanation constituted reasonable cause and took the case outside penal consequences. Case-Laws Income Tax Fri, 20 Mar 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121503