https://www.taxtmi.com/caselaws?id=328712 Penalty under section 271C for alleged failure to deduct tax at source was held unsustainable where no order under section 201(1) had been passed treating the payer as an assessee in default and the recipients had already included the income in their returns. Applying the amended scheme of section 201, the Tribunal noted that once the payees had declared the income and paid tax, the payer could not be treated as in default for the underlying tax liability. As the foundation for penalty did not survive, the penalty was deleted. en-us Wed, 04 May 2016 00:00:00 +0530 Wed, 08 Jun 2016 12:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328712 Penalty under section 271C for alleged failure to deduct tax at source was held unsustainable where no order under section 201(1) had been passed treating the payer as an assessee in default and the recipients had already included the income in their returns. Applying the amended scheme of section 201, the Tribunal noted that once the payees had declared the income and paid tax, the payer could not be treated as in default for the underlying tax liability. As the foundation for penalty did not survive, the penalty was deleted. Case-Laws Income Tax Wed, 04 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328712