https://www.taxtmi.com/caselaws?id=280077 Penalty under section 271C cannot survive where the foundational order under section 201(1) and 201(1A) has been set aside as time-barred, because the assessee is no longer treated as being in default. The liability to deduct or pay tax under section 201(1) is the necessary prerequisite for levy of penalty under section 271C, and the quantum of penalty is linked to the amount of tax not deducted or paid. Once that default finding ceases to operate, the statutory basis for penalty disappears, so deletion of the penalty was justified. en-us Mon, 31 Jan 2011 00:00:00 +0530 Fri, 19 Apr 2019 15:44:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=280077 Penalty under section 271C cannot survive where the foundational order under section 201(1) and 201(1A) has been set aside as time-barred, because the assessee is no longer treated as being in default. The liability to deduct or pay tax under section 201(1) is the necessary prerequisite for levy of penalty under section 271C, and the quantum of penalty is linked to the amount of tax not deducted or paid. Once that default finding ceases to operate, the statutory basis for penalty disappears, so deletion of the penalty was justified. Case-Laws Income Tax Mon, 31 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=280077