https://www.taxtmi.com/caselaws?id=13174 HC held that penalty under section 271C is not automatic and requires the assessing officer to first consider whether the failure to deduct TDS was without reasonable cause. The assessee bore initial burden to show reasonable cause, which must be an honest belief founded on reasonable grounds. Commissioner erred by not considering the plea of reasonable cause; that omission vitiated the order. The impugned order under review was set aside and the writ petition allowed; the question of liability under section 192 remains open. en-us Thu, 19 Apr 2001 00:00:00 +0530 Sat, 04 Oct 2025 09:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13174 HC held that penalty under section 271C is not automatic and requires the assessing officer to first consider whether the failure to deduct TDS was without reasonable cause. The assessee bore initial burden to show reasonable cause, which must be an honest belief founded on reasonable grounds. Commissioner erred by not considering the plea of reasonable cause; that omission vitiated the order. The impugned order under review was set aside and the writ petition allowed; the question of liability under section 192 remains open. Case-Laws Income Tax Thu, 19 Apr 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13174