https://www.taxtmi.com/caselaws?id=765695 The Karnataka HC upheld CIT(A) and ITAT orders granting relief from penalty u/s.271C for failure to deduct TDS. The assessee's non-deduction was based on bona fide belief formed through legal opinions from reputed law firm and chartered accountant firm. The assessee had also applied for advance ruling which wasn't processed due to personal reasons of the Chairman. The court found reasonable cause existed for not deducting TDS, noting absence of mala fide intent and lack of benefit to assessee from non-deduction. The penalty was set aside in favor of the assessee. en-us Mon, 03 Feb 2025 00:00:00 +0530 Tue, 10 Jun 2025 14:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765695 The Karnataka HC upheld CIT(A) and ITAT orders granting relief from penalty u/s.271C for failure to deduct TDS. The assessee's non-deduction was based on bona fide belief formed through legal opinions from reputed law firm and chartered accountant firm. The assessee had also applied for advance ruling which wasn't processed due to personal reasons of the Chairman. The court found reasonable cause existed for not deducting TDS, noting absence of mala fide intent and lack of benefit to assessee from non-deduction. The penalty was set aside in favor of the assessee. Case-Laws Income Tax Mon, 03 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765695