https://www.taxtmi.com/caselaws?id=752543 The Delhi HC quashed penalty proceedings under section 271C against airlines for failure to deduct TDS under section 194C on External Development Charges. The court found reasonable cause existed under section 273B due to contradictory HC pronouncements creating genuine legal uncertainty regarding application of section 194H to supplementary commission. Different airlines had adopted opposing interpretations, with some deducting tax while others did not. The court noted this represented an arguable legal issue requiring judicial resolution, justifying the airlines' position during the relevant period. en-us Fri, 03 May 2024 00:00:00 +0530 Mon, 13 May 2024 17:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752543 The Delhi HC quashed penalty proceedings under section 271C against airlines for failure to deduct TDS under section 194C on External Development Charges. The court found reasonable cause existed under section 273B due to contradictory HC pronouncements creating genuine legal uncertainty regarding application of section 194H to supplementary commission. Different airlines had adopted opposing interpretations, with some deducting tax while others did not. The court noted this represented an arguable legal issue requiring judicial resolution, justifying the airlines' position during the relevant period. Case-Laws Income Tax Fri, 03 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752543