https://www.taxtmi.com/caselaws?id=253676 The Tribunal upheld the deletion of the penalty under section 271C of the Income Tax Act, citing a reasonable cause for the non-deduction of tax on reimbursement of food expenses paid to employees by the company engaged in power generation. The decision emphasized that penalty under section 271C is not automatic and requires proof of failure without a reasonable cause. The absence of deliberate defiance of the law and the presence of a bona fide omission in tax deduction led to the dismissal of the appeals, in line with legal provisions and judicial interpretations. en-us Tue, 02 Sep 2014 00:00:00 +0530 Mon, 01 Dec 2014 06:34:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=253676 The Tribunal upheld the deletion of the penalty under section 271C of the Income Tax Act, citing a reasonable cause for the non-deduction of tax on reimbursement of food expenses paid to employees by the company engaged in power generation. The decision emphasized that penalty under section 271C is not automatic and requires proof of failure without a reasonable cause. The absence of deliberate defiance of the law and the presence of a bona fide omission in tax deduction led to the dismissal of the appeals, in line with legal provisions and judicial interpretations. Case-Laws Income Tax Tue, 02 Sep 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=253676