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2020 (2) TMI 880 - ITAT BANGALOREPenalty u/s.271-C - non deduction of TDS on Leave Travel Allowance (LTA) - reasonable cause for the failure - HELD THAT:- The facts of the case of the Assessee in these appeals is identical to the case decided in the case of State Bank of India [2019 (1) TMI 145 - ITAT JAIPUR] and therefore the ratio laid down therein will squarely apply to the facts of the Assessee’s case and therefore following the ratio laid down therein, the penalty imposed is liable to be cancelled. In the case of Ankita Electronics Pvt. Ltd. [2015 (3) TMI 1029 - KARNATAKA HIGH COURT] had an occasion to deal with issue whether penalty can be levied when quantum proceedings are pending in the Hon’ble High Court and substantial question of law is framed for consideration by the High court on the default which is the basis for initiating penalty proceedings and held that when the additions in respect of which penalty under Section 271(1)(c) of the Act was levied, are challenged in appeal before High Court and when High Court has admitted for consideration the correctness of such addition then it means that the additions made were debatable and would lead credence to the bonafides of the assessee and in such circumstances imposition of penalty was not proper and was rightly deleted by the Tribunal. We are of the view that levy of penalty u/s.271C cannot be sustained and the same is directed to be deleted. - Decided in favour of assessee.
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