https://www.taxtmi.com/caselaws?id=330785 Where the TDS treatment of warehouse charges was debatable, the assessee's failure to deduct tax under the correct provision was protected by reasonable cause under Section 273B. The Delhi HC treated the decisive question for penalty under Section 271C as whether the default was bona fide, not the quantum dispute over the deduction provision. As the assessee had acted on a genuine understanding that Section 194-C applied, and the materials showed no deliberate or contumacious default, penalty was not leviable. The existence of CBDT circulars did not, by itself, negate reasonable cause. en-us Mon, 01 Aug 2016 00:00:00 +0530 Thu, 17 Nov 2016 18:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=330785 Where the TDS treatment of warehouse charges was debatable, the assessee's failure to deduct tax under the correct provision was protected by reasonable cause under Section 273B. The Delhi HC treated the decisive question for penalty under Section 271C as whether the default was bona fide, not the quantum dispute over the deduction provision. As the assessee had acted on a genuine understanding that Section 194-C applied, and the materials showed no deliberate or contumacious default, penalty was not leviable. The existence of CBDT circulars did not, by itself, negate reasonable cause. Case-Laws Income Tax Mon, 01 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=330785