https://www.taxtmi.com/caselaws?id=285780 Penalty under section 271CA for failure to collect tax at source under section 206C was held unsustainable where the assessee showed reasonable cause. The Tribunal accepted that the assessee's belief that the goods sold were not scrap was bona fide and reasonable, and it noted that the buyers had paid the tax, leaving no outstanding revenue loss. Applying section 273B, the Tribunal reiterated that penalty is not automatic and can be imposed only when the default occurs without reasonable cause. On these facts, the deletion of penalty was upheld in law. en-us Fri, 30 Dec 2016 00:00:00 +0530 Sun, 26 Jan 2020 08:27:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285780 Penalty under section 271CA for failure to collect tax at source under section 206C was held unsustainable where the assessee showed reasonable cause. The Tribunal accepted that the assessee's belief that the goods sold were not scrap was bona fide and reasonable, and it noted that the buyers had paid the tax, leaving no outstanding revenue loss. Applying section 273B, the Tribunal reiterated that penalty is not automatic and can be imposed only when the default occurs without reasonable cause. On these facts, the deletion of penalty was upheld in law. Case-Laws Income Tax Fri, 30 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285780