https://www.taxtmi.com/caselaws?id=263511 Penalty under section 271C for failure to deduct tax at source is not automatic and depends on whether the default occurred without reasonable cause under section 273C. On labour charges paid through a group leader, the assessee's bona fide belief and surrounding site circumstances supported a reasonable-cause explanation, so the penalty was not justified and was deleted. By contrast, short deduction on job work, transportation and similar payments was treated as an admitted default not covered by that explanation, so the penalty was sustained for those items. en-us Wed, 12 Aug 2015 00:00:00 +0530 Fri, 04 Sep 2015 07:49:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=263511 Penalty under section 271C for failure to deduct tax at source is not automatic and depends on whether the default occurred without reasonable cause under section 273C. On labour charges paid through a group leader, the assessee's bona fide belief and surrounding site circumstances supported a reasonable-cause explanation, so the penalty was not justified and was deleted. By contrast, short deduction on job work, transportation and similar payments was treated as an admitted default not covered by that explanation, so the penalty was sustained for those items. Case-Laws Income Tax Wed, 12 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=263511