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2016 (6) TMI 888 - AT - Income TaxPenalty u/s 271CA - waiver of penatly u/s 273B - failure with respect to TCS liability - Held that:- Levy of penalty under section 271C of the Income-tax Act, 1961, for failure To deduct tax at source, is not automatic. In order to bring in application of Section 271C, in the backdrop of the overriding non obstante clause in section 273B, absence of reasonable cause, existence of which has to be established, is A sine qua non. Before levying penalty, the concerned officer is required to find out that even if there was any failure to deduct tax at source, the same was without reasonable cause. The initial burden is on the assessee to show that there exists reasonable cause which was the reason for the failure. There- after, the officer has to consider whether the explanation offered by the assessee or other person as regards the reason for failure, was on account of reasonable cause. See Wood ward Governor India P. Ltd. Vs CIT [2001 (4) TMI 34 - DELHI High Court ] - Decided in favour of assessee
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