TMI Blog2006 (3) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... itiated 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax in India. A deduction of tax at source in terms of section 192 of the Income-tax Act, 1961, was also essential on such payments. The respondent 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source on payments made to expatriate employees working in India through the Japanese Embassy. It also held that after the issue was finally settled the companies had paid not only the amount of tax which was liable to be deducted at source but also interest due thereon under section 201(1A) of the Act. This voluntary payment of the amount of tax and interest and the attendant circumstances in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present batch of cases from those cases, was the making of a voluntary disclosure by one of the employees of the respondent-company in which income received by the expatriate outside India was also disclosed to the authorities for purposes of tax in India. The Tribunal has noticed a similar argument advanced before it and in our opinion rightly rejected the same. What is significant is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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