Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2006 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (3) TMI 106 - HC - Income TaxRespondent did not deduct the tax at source on the salaries paid to the expatriate employees outside India and thereby committed a default of its obligation under section 192 of the Act. Penalty proceedings under section 271C of the Act were initiated against the assessee - assessee contended that it had a reasonable cause within the meaning of section 273B of the Act for not making the deductions. The Tribunal has accepted that contention and deleted the penalties holding that there indeed was a reasonable cause for the non-deduction of tax at source in terms of section 192 - Just because one of the employees of the respondent-company had made a VDIS declaration in which the income earned by him outside India was also declared for purposes of tax did not negate the effect of the other circumstances which constituted a reasonable cause for the assessee not to make the deduction. – whether or not there was no reasonable cause within the meaning of section 271C is a question of fact on which the Tribunal has recorded a finding - In the absence of any perversity in the said finding, we are of the opinion that no substantial question of law arises for our consideration
|