https://www.taxtmi.com/caselaws?id=329030 The appeal challenged the Tribunal's decision upholding the cancellation of penalty under Section 271C for the assessment year 1998-1999. The Tribunal supported the cancellation of penalty as done by the Commissioner of Income Tax (Appeals). The case involved the assessee, a money lending firm, failing to deduct tax at source under Section 194A on interest payments to sister concerns. The Tribunal confirmed the cancellation of penalty citing the absence of reasonable cause for the failure to deduct tax. The conflicting reasons provided by the Commissioner (Appeals) and the Tribunal regarding 'reasonable cause' under Section 273B raised doubts about the validity of the decision to cancel the penalty. The Tribunal's decision to cancel the penalty was deemed illegal as the assessee failed to establish a valid reasonable cause as required by law. en-us Mon, 06 Jun 2016 00:00:00 +0530 Sat, 16 Jul 2016 11:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=329030 The appeal challenged the Tribunal's decision upholding the cancellation of penalty under Section 271C for the assessment year 1998-1999. The Tribunal supported the cancellation of penalty as done by the Commissioner of Income Tax (Appeals). The case involved the assessee, a money lending firm, failing to deduct tax at source under Section 194A on interest payments to sister concerns. The Tribunal confirmed the cancellation of penalty citing the absence of reasonable cause for the failure to deduct tax. The conflicting reasons provided by the Commissioner (Appeals) and the Tribunal regarding 'reasonable cause' under Section 273B raised doubts about the validity of the decision to cancel the penalty. The Tribunal's decision to cancel the penalty was deemed illegal as the assessee failed to establish a valid reasonable cause as required by law. Case-Laws Income Tax Mon, 06 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=329030