Penalty u/s. 276B set aside as reasonable cause shown: Delhi HC

ITO Vs MKY Constructions Private Limited (Delhi High Court) Delhi High Court held that penalty imposed under section 276B of the Income Tax Act is liable to be set aside on account of section 278AA of the Income Tax Act as reasonable cause shown. Accordingly, petition by revenue dismissed. Facts- The petitioner is the Income Tax Officer, New Delhi. The petitioner alleged that the respondent company had deducted TDS but failed to deposit the same with the Central Government within the prescribed period. Admittedly, the defaults were later remedied by depositing the amount which was deducted as ...