Penalty under section 37(5) and delayed advance tax remittance were examined alongside timely return filing and tax payment.

Penalty under section 37(5) is discussed in the context of delayed remittance of advance tax where the return was filed and tax was paid before the due date, with tax also paid in excess. The text notes that the explanation for the delay was accepted on merits and that, in those circumstances, the discretionary power to impose penalty was treated as not warranting interference. It also records that the tax revision case was dismissed as barred by limitation, with the challenge to the penalty ultimately not succeeding.

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Issues: Whether the levy of penalty under section 37(5) of the Act was sustainable despite the explanation for delay in remitting advance tax and the filing of return and payment of tax before the due date.

Analysis: The delay in filing the tax revision case led to dismissal as barred by limitation. On merits, the explanation offered for the delayed remittance of advance tax was accepted. The respondent had filed the return and paid tax before the due date, and had also paid tax in excess. In these circumstances, the discretionary power to impose penalty was held not to warrant interference.

Conclusion: The levy of penalty under section 37(5) of the Act was held to be unsustainable and the revision was dismissed.

Final Conclusion: The challenge to the penalty failed, and the tax revision stood dismissed.

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