https://www.taxtmi.com/caselaws?id=394213 The Tribunal found that the banking institution had a reasonable cause for not deducting tax on foreign travel reimbursement, as it was due to a bona fide belief and misinterpretation of tax provisions. The Tribunal noted the diligent collection of evidence by the assessee to support the exemption claimed by employees for Leave Travel Concession (LTC), without evidence of connivance or forged claims. Relying on previous decisions and a Karnataka High Court ruling, the Tribunal concluded that the penalty under section 271C was not sustainable. The penalty was directed to be deleted, and the appeal by the assessee was allowed. en-us Fri, 14 Feb 2020 00:00:00 +0530 Sat, 04 Apr 2020 12:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=394213 The Tribunal found that the banking institution had a reasonable cause for not deducting tax on foreign travel reimbursement, as it was due to a bona fide belief and misinterpretation of tax provisions. The Tribunal noted the diligent collection of evidence by the assessee to support the exemption claimed by employees for Leave Travel Concession (LTC), without evidence of connivance or forged claims. Relying on previous decisions and a Karnataka High Court ruling, the Tribunal concluded that the penalty under section 271C was not sustainable. The penalty was directed to be deleted, and the appeal by the assessee was allowed. Case-Laws Income Tax Fri, 14 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=394213