https://www.taxtmi.com/caselaws?id=60146 The Tribunal dismissed the Revenue's appeal against the deletion of a penalty under s. 271C for the financial year 1991-92. The penalty of Rs. 1,20,000 imposed for short-deduction of tax at source from dividends was deemed unjustified due to a programming error, which was considered a reasonable cause for the failure to deduct tax. The Tribunal emphasized that penalties under s. 271C are not automatic and should not be imposed without evidence of deliberate defiance of the law or dishonest conduct. The decision to quash the penalty was upheld, highlighting the importance of an objective assessment of the circumstances. en-us Mon, 30 Apr 2001 00:00:00 +0530 Mon, 03 Jan 2011 18:55:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60146 The Tribunal dismissed the Revenue's appeal against the deletion of a penalty under s. 271C for the financial year 1991-92. The penalty of Rs. 1,20,000 imposed for short-deduction of tax at source from dividends was deemed unjustified due to a programming error, which was considered a reasonable cause for the failure to deduct tax. The Tribunal emphasized that penalties under s. 271C are not automatic and should not be imposed without evidence of deliberate defiance of the law or dishonest conduct. The decision to quash the penalty was upheld, highlighting the importance of an objective assessment of the circumstances. Case-Laws Income Tax Mon, 30 Apr 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60146