Penalty Not Leviable U/S 271C if Reasonable Cause Shown for Non-Deduction of TDS

State Bank of India Vs ACIT (ITAT Jaipur) CONCLUSION – Since assessee had a reasonable cause for non-deduction of TDS, penalty u/s 271C not leviable in terms of section 273B. FACTS – Demand of INR 7,70,720 was confirmed on the assessee on account of non-deduction of TDS on reimbursement of leave fare concession which included travel outside India. A notice was issued to the assessee for initiation of penalty proceedings u/s 271C. Assessee stated that they were under the bona fide belief that LTC claim for travel within India cannot be denied just because the same includes visit outside I...