Section 271C Penalty was not warranted if Reasonable Cause exist: Madras HC

CIT Vs Viswapriya Financial Services & Securities Ltd. (Madras High Court) The Madras High Court recently ruled in favor of Viswapriya Financial Services & Securities Ltd., holding that the company was not liable for a penalty under Section 271C of the Income Tax Act, 1961. The case revolved around the non-deduction of tax at source (TDS) under Section 194A on returns paid to investors. The Income Tax Department contended that the company had consciously avoided TDS obligations by advertising that returns on investments would not be subject to TDS. However, the court upheld the ruling ...