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2013 (4) TMI 450 - ALLAHABAD HIGH COURTPanelty U/s 271C - Short deduction of tax at source under the Act - Held that:- Looking to the fact that the petitioner is a part of State Government, we find that there was sufficient cause for short deduction of tax at source. The impugned orders have not taken into consideration Section 273-B of the Act, while upholding the penalty. The section provides that no penalty shall be impossable on the person or the assessee, as the case may be, for any failure referred to Section 271-C if he proves that there was reasonable cause for the said failure. Authorities were under legal obligation to consider the explanation given by the petitioner. We are of the opinion that no case for levying the penalty under Section 271-C of the Act has been made out as cause shown by the petitioner is sufficient - The impugned orders cannot be allowed to stand and are hereby quashed - The impugned penalty is set aside - the writ petition succeeds and is allowed.
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