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2011 (7) TMI 666 - HC - Income TaxBonafide faliure for non deduction of tax on payments made to non members by Co-operative banks- AO Levied penalty-CIT(A) cancelled the order - Tribunal affirmed CIT(A) - Revenue further appealed - Held that:- In view of Income Tax Vs. Eli Lilly & Company (India) Pvt Ltd. & Ors (2009 -TMI - 32752 - SUPREME COURT)- 273B states that notwithstanding anything contained in section 271 - no penalty shall be imposed on the person or the assessee for failure to deduct tax at source if such person or the assessee proves that there was a reasonable cause for the said failure. Therefore, the liability to levy of penalty can be fastened only on the person who do not have good and sufficient reason for not deducting tax at source. Only those persons will be liable to penalty who do not have good and sufficient reason for not deducting the tax. Thus appeal stands dismissed.
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