https://www.taxtmi.com/caselaws?id=59008 Financial difficulty alone does not constitute reasonable cause for failure to remit tax deducted at source where the assessee cannot show even inability to meet the underlying salary obligations. Prolonged retention of deducted tax, especially over several years, is treated as a serious default because the amounts belong to the Government after deduction from employees. Penalty under section 221 is therefore leviable in such cases, although the quantum may be moderated where the circumstances justify reduction. The commentary further notes that sustained default may attract penalty even if a single lapse might not. en-us Thu, 02 Apr 1981 00:00:00 +0530 Thu, 23 Dec 2010 15:36:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59008 Financial difficulty alone does not constitute reasonable cause for failure to remit tax deducted at source where the assessee cannot show even inability to meet the underlying salary obligations. Prolonged retention of deducted tax, especially over several years, is treated as a serious default because the amounts belong to the Government after deduction from employees. Penalty under section 221 is therefore leviable in such cases, although the quantum may be moderated where the circumstances justify reduction. The commentary further notes that sustained default may attract penalty even if a single lapse might not. Case-Laws Income Tax Thu, 02 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59008