Reasoned penalty assessment under trade tax law fails where delayed tax payment explanations are not examined and affirmed mechanically.

Penalty under Section 15-A(1)(a) of the U.P. Trade Tax Act requires a finding that tax was not deposited without reasonable cause. Here, part of the tax had been paid on time and the balance was delayed while accounts were being finalised and audited. The authorities did not examine that explanation, and the Tribunal merely affirmed the penalty without giving independent reasons. Because an order affecting rights must show application of mind and reasoned consideration, the penalty and its affirmance were unsustainable; the revision was allowed and the penalty set aside.

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Issues: Whether penalty under Section 15-A(1)(a) of the U.P. Trade Tax Act could be sustained when the tax was deposited belatedly for stated reasons and the Tribunal had not recorded reasons or a finding on absence of reasonable cause.

Analysis: Penalty under the provision required a conclusion that the dealer had failed to deposit tax without reasonable cause. The record showed that a part of the tax had been paid within time and the balance was delayed because the accounts were being finalized and audited. The authorities below did not examine this explanation, nor did the Tribunal give independent reasons for affirming the penalty. An order affecting rights must disclose reasons and application of mind; a mechanical affirmance is unsustainable.

Conclusion: The penalty order and the Tribunal's affirmance could not be sustained. The revision was allowed and the penalty was set aside.

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