TaxTMI 
TaxTMI 
2005 (7) TMI 63
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.... for not making the deduction and, accordingly, cancelled the penalty levied upon the assessee under section 271C of the Act. In doing so, the Tribunal also placed reliance upon the orders passed by it in the cases of Mitsui and Co. Ltd., Marubeni Corporation and Fuji Bank Ltd., which orders had been upheld even by this court in appeal. This is evident from the following paragraph appearing in the Tribunal's order: "However, the appeals of the assessee for all these years including the assessment year 1989-90 deserve to succeed on the reasoning that there was reasonable cause for not deducting the tax at source in view of section 192 in time. In such circumstances, the penalty is not leviable on the ground that there was a reasonable cause....
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.... on the question of reasonableness of the cause could not give rise to a substantial question of law. This is evident from the following passage from the said decision: "The Division Bench again reiterated what constitutes 'reasonable cause' in the case of Woodward Governor India P. Ltd. v. CIT [2002] 253 ITR 745 (Delhi). In view of what is stated hereinabove, we are of the view that the issue, whether there was reasonable cause or not for the assessee not to deduct tax at source is a question of fact which has been determined by the Tribunal. As such, no substantial question of law arises." In the second place, the question whether the facts of the three cases decided earlier were similar to those of the present case does not appear to h....