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2014 (2) TMI 800 - HC - Income TaxWaiver of penalty - Reasonable cause - Scope of reasonable cause as defined in section 273B of the Act - Short deduction of TDS on account of the payment of trade discount/commission to franchisees - Whether reasonable cause for a failure to deduct tax at source under Section 194H of the Act had been shown by the Assessee – Held that:- The fundamental principle is that ignorance of law is no excuse - The CIT(A) has exercised his discretion that the assessee was under a bona fide belief that tax was not liable to be deducted on commission/trade discount - on a review of facts, it was found that a reasonable cause had been shown under Section 273B – thus, the imposition of penalty which was deleted by the CIT(A) has been affirmed by the Tribunal – there is no substantial question of law arises for adjudication – Decided against Revenue.
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