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2018 (2) TMI 671 - HC - Income TaxPenalty u/s.271C - proof of existence of reasonable cause - assessee company had failed to deduct tax at source and also failed to pay the amount of TDS to the credit of the Government account within the specified time - Held that:- Both, the Commissioner (Appeals) as well as the Tribunal have concurrently found that the assessee had submitted an explanation for the delay in deduction of tax at source and in late deposit of such tax, which explanation was found to be reasonable. Section 273B of the Act, inter alia, provides that notwithstanding anything contained in the provisions of section 271C of the Act, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provision if it is proved that there was reasonable cause for the said failure. In the facts of the present case, the Tribunal having recorded a concurrent finding of fact to the effect that the assessee has proved that there was reasonable cause for failure in deducting tax at source and delay in making payment to the Government account, was wholly justified upholding the action of the Commissioner (Appeals) of invoking the provisions of section 273B of the Act and deleting the penalty. - Decided in favour of assessee
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