https://www.taxtmi.com/caselaws?id=433512 Penalty under section 271C was held not leviable for alleged non-deduction of tax at source on payment of External Development Charges to HUDA. The Tribunal followed its earlier coordinate bench rulings on identical facts and noted that the payments were made through the governmental licensing framework, with no settled clarity at the relevant time on whether tax was deductible. It accepted that the assessee acted under a bona fide belief and that the surrounding circumstances constituted reasonable cause under section 273B. Even if a deduction dispute under section 194C arose, the penal consequence under section 271C did not apply, and the penalty deletion was upheld. en-us Mon, 30 Jan 2023 00:00:00 +0530 Tue, 31 Jan 2023 14:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=433512 Penalty under section 271C was held not leviable for alleged non-deduction of tax at source on payment of External Development Charges to HUDA. The Tribunal followed its earlier coordinate bench rulings on identical facts and noted that the payments were made through the governmental licensing framework, with no settled clarity at the relevant time on whether tax was deductible. It accepted that the assessee acted under a bona fide belief and that the surrounding circumstances constituted reasonable cause under section 273B. Even if a deduction dispute under section 194C arose, the penal consequence under section 271C did not apply, and the penalty deletion was upheld. Case-Laws Income Tax Mon, 30 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=433512