Penalty U/s 271C exigible if delay in remittance of TDS for Unreasonable Cause

Brief of the Case: It was held by Kerala High Court in the case of Classic Concepts Home India Private Limited V/s. CIT that, penalty U/s 271C is exigible if delay in remittance of TDS is caused due to unreasonable cause.

Brief Facts of the Case: The assessee has delayed in payment of Tax deducted at source. Therefore, penalty proceedings were initiated and penalty was levied U/s 271C of the Income Tax Act. It was argued by the assessee that there was no willful or deliberate delay in payment of TDS and therefore, penalty is not exigible U/s 271C.

Question of Law: Whether penalty was exigible U/s 271C of the Income Tax Act when delay in payment of TDS is caused due to unreasonable cause on the part of assessee?

Contention of the Assessee:

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