https://www.taxtmi.com/caselaws?id=10117 Penalty under section 271C is not sustainable where the assessee shows reasonable cause for non-deduction of tax at source. The Tribunal found that the assessee had deducted tax on salary paid in India, paid interest on delayed tax payments, and acted on a bona fide belief supported by internal legal advice that the payments made in Japan were not taxable in India. It also noted that the Revenue did not establish knowledge of the exact salary payments in Japan or any prior adverse determination in the expatriate employees' cases. The cancellation of penalty was upheld because no perversity was shown in the factual finding on reasonable cause. en-us Thu, 06 May 2004 00:00:00 +0530 Tue, 07 Jul 2009 16:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10117 Penalty under section 271C is not sustainable where the assessee shows reasonable cause for non-deduction of tax at source. The Tribunal found that the assessee had deducted tax on salary paid in India, paid interest on delayed tax payments, and acted on a bona fide belief supported by internal legal advice that the payments made in Japan were not taxable in India. It also noted that the Revenue did not establish knowledge of the exact salary payments in Japan or any prior adverse determination in the expatriate employees' cases. The cancellation of penalty was upheld because no perversity was shown in the factual finding on reasonable cause. Case-Laws Income Tax Thu, 06 May 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10117