https://www.taxtmi.com/caselaws?id=799042 Reasonable cause may preclude penalties for failures to deduct or collect tax where a bona fide belief is objectively supportable. Payment of rent to a Government-owned company may support a genuine understanding that tax deduction is not required, particularly where the recipient has the character of a State instrumentality. Construction scrap generated through labour and materials may be regarded as outside tax-collection requirements where it does not arise from a manufacturing process. On these principles, bona fide beliefs concerning both obligations can constitute reasonable cause and prevent penalty. en-us Fri, 11 Sep 2026 00:00:00 +0530 Wed, 16 Sep 2026 08:38:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799042 Reasonable cause may preclude penalties for failures to deduct or collect tax where a bona fide belief is objectively supportable. Payment of rent to a Government-owned company may support a genuine understanding that tax deduction is not required, particularly where the recipient has the character of a State instrumentality. Construction scrap generated through labour and materials may be regarded as outside tax-collection requirements where it does not arise from a manufacturing process. On these principles, bona fide beliefs concerning both obligations can constitute reasonable cause and prevent penalty. Case-Laws Income Tax Fri, 11 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799042