https://www.taxtmi.com/caselaws?id=421713 Penalty under section 271C for failure to deduct tax at source under section 194C was held unsustainable where the assessee's non-deduction on harvesting charges arose from a bona fide view on a highly debatable issue. The record showed judicial divergence on the nature of the payments and the applicability of TDS, supporting the assessee's claim of reasonable cause. As section 273B exempts penalty when reasonable cause is proved, the assessee was found protected and no penalty could be imposed. en-us Tue, 19 Apr 2022 00:00:00 +0530 Fri, 29 Apr 2022 22:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421713 Penalty under section 271C for failure to deduct tax at source under section 194C was held unsustainable where the assessee's non-deduction on harvesting charges arose from a bona fide view on a highly debatable issue. The record showed judicial divergence on the nature of the payments and the applicability of TDS, supporting the assessee's claim of reasonable cause. As section 273B exempts penalty when reasonable cause is proved, the assessee was found protected and no penalty could be imposed. Case-Laws Income Tax Tue, 19 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421713