https://www.taxtmi.com/caselaws?id=57768 Interest under section 201(1A) is compensatory and does not arise where tax attributable to the relevant income reaches the Government within the period available to the deductor for deposit, leaving no compensable loss to the Revenue. Penalty for failure to deduct tax at source is protected by the reasonable-cause defence under section 273B. Bona fide reliance on an assurance that a lower-deduction certificate would be furnished, coupled with payment of tax within the permitted deposit period, can establish reasonable cause and demonstrate voluntary compliance. Accordingly, neither compensatory interest nor penalty is warranted where the Revenue suffers no delayed deprivation of tax and the deductor proves bona fide circumstances. en-us Fri, 30 Aug 2002 00:00:00 +0530 Mon, 13 Dec 2010 13:23:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57768 Interest under section 201(1A) is compensatory and does not arise where tax attributable to the relevant income reaches the Government within the period available to the deductor for deposit, leaving no compensable loss to the Revenue. Penalty for failure to deduct tax at source is protected by the reasonable-cause defence under section 273B. Bona fide reliance on an assurance that a lower-deduction certificate would be furnished, coupled with payment of tax within the permitted deposit period, can establish reasonable cause and demonstrate voluntary compliance. Accordingly, neither compensatory interest nor penalty is warranted where the Revenue suffers no delayed deprivation of tax and the deductor proves bona fide circumstances. Case-Laws Income Tax Fri, 30 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57768