No Section 271C Penalty for Non Deduction of TDS If There was Bona Fide & Reasonable Cause

Ghaziabad Development Authority Vs  ACIT  (ITAT Delhi)

We find that on the issue of reasonable cause u/s.273B, assessee does has a prima facie case, because as per the CBDT Circular No. 275 dated 21.09.1994, it has been clarified that responsibility for making deduction tax at source u/s. 194A should be that of Collector (Land Acquisition) or any authority empowered under the Land Acquisition Act, 1894 who acquires the land for the public purpose. When concerned parties whose land has been acquired, go to the Court of law

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