No Section 271C Penalty for Non-Deduction of TDS Due to Professional Advice: Karnataka HC

CIT Vs Jindal Tractebel Power Co. Ltd. (Karnataka High Court) n the case of CIT Vs Jindal Tractebel Power Co. Ltd., the Karnataka High Court deliberated on the imposition of a penalty under Section 271C of the Income Tax Act, 1961, for failure to deduct tax at source (TDS). The appeal by the Revenue challenged the Income Tax Appellate Tribunal (ITAT) decision, which set aside penalties levied on the respondent for Assessment Years 1996-97 and 1997-98. The dispute centered on whether the respondent’s explanation for non-deduction of TDS constituted “reasonable cause” under Sec...