Penalty for non deduction of tax at source

Subbaiya (Employee) (49 Points)

01 October 2007  

Hi

One CA was of the view that since expenses are disallowed (u/s 40(a)(ia)) in case tax has not been deducted at source, there can be no ground for levying penalty u/s 271 C

Is this view correct

 

Regards

Subbaiya