https://www.taxtmi.com/caselaws?id=203287 Penalty under section 271C was upheld where tax was not deducted at source from directors' remuneration. The Tribunal held that the payer's statutory TDS obligation cannot be displaced by declarations from the payees promising to pay advance tax, and later payment of tax by the directors did not cure the default already committed at the time of payment. It further held that an explanation which would effectively render the TDS provisions redundant cannot amount to reasonable cause. On that basis, the assessee remained liable for the statutory default and the penalty was sustained. en-us Fri, 10 Dec 2010 00:00:00 +0530 Tue, 17 May 2011 08:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203287 Penalty under section 271C was upheld where tax was not deducted at source from directors' remuneration. The Tribunal held that the payer's statutory TDS obligation cannot be displaced by declarations from the payees promising to pay advance tax, and later payment of tax by the directors did not cure the default already committed at the time of payment. It further held that an explanation which would effectively render the TDS provisions redundant cannot amount to reasonable cause. On that basis, the assessee remained liable for the statutory default and the penalty was sustained. Case-Laws Income Tax Fri, 10 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203287