Absence of reasonable cause must for Section 271C penalty imposition: Delhi HC

Woodward Governors India (P) Ltd. Vs CIT & Ors. (Delhi High Court) Delhi High Court reviewed the case of Woodward Governors India (P) Ltd. vs. CIT & Ors., wherein the company challenged the penalty imposed under Section 271C of the Income Tax Act, 1961. The dispute arose from the company’s failure to properly deduct TDS on the salary of an expatriate employee, leading to a penalty of ₹27,68,844. The petitioner contended that the payment was made by a non-resident company and that the deeming provision of Section 9(1)(ii) of the Act should not automatically establish an obligation u...