https://www.taxtmi.com/highlights?id=103812 Reasonable cause under section 273B excused failures to deduct tax from rent paid to a Government-owned company and to collect tax on construction scrap. ITAT accepted the payer's bona fide belief that the Government-owned payee was a Government instrumentality not subject to tax deduction at source, treating that belief as reasonable cause; the rent-related penalty was deleted. ITAT also accepted the bona fide understanding that scrap arising from construction activities, including cutting and moulding materials, was not scrap covered by the tax-collection provisions because construction was not treated as manufacturing. The related tax-collection penalty was likewise deleted. en-us Wed, 16 Sep 2026 08:38:35 +0530 Wed, 16 Sep 2026 08:38:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=103812 Reasonable cause under section 273B excused failures to deduct tax from rent paid to a Government-owned company and to collect tax on construction scrap. ITAT accepted the payer's bona fide belief that the Government-owned payee was a Government instrumentality not subject to tax deduction at source, treating that belief as reasonable cause; the rent-related penalty was deleted. ITAT also accepted the bona fide understanding that scrap arising from construction activities, including cutting and moulding materials, was not scrap covered by the tax-collection provisions because construction was not treated as manufacturing. The related tax-collection penalty was likewise deleted. Highlights Income Tax Wed, 16 Sep 2026 08:38:35 +0530 https://www.taxtmi.com/highlights?id=103812