https://www.taxtmi.com/caselaws?id=800551 Binding interim judicial directions restraining tax deduction at source on LFC reimbursements prevent a deductor from being treated as an assessee in default for complying with those directions, even where the reimbursements are later held substantively taxable. The employees' substantive tax liability remains unaffected. Such compelled, bona fide compliance constitutes reasonable cause, precluding penalties for failure to deduct tax. Institutional approval processes, personnel changes and e-filing access difficulties may constitute sufficient cause for condoning delayed penalty appeals where there is no deliberate delay, mala fides, prejudice to Revenue, or surviving underlying withholding demand. en-us Thu, 03 Sep 2026 00:00:00 +0530 Thu, 08 Oct 2026 08:45:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800551 Binding interim judicial directions restraining tax deduction at source on LFC reimbursements prevent a deductor from being treated as an assessee in default for complying with those directions, even where the reimbursements are later held substantively taxable. The employees' substantive tax liability remains unaffected. Such compelled, bona fide compliance constitutes reasonable cause, precluding penalties for failure to deduct tax. Institutional approval processes, personnel changes and e-filing access difficulties may constitute sufficient cause for condoning delayed penalty appeals where there is no deliberate delay, mala fides, prejudice to Revenue, or surviving underlying withholding demand. Case-Laws Income Tax Thu, 03 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800551