https://www.taxtmi.com/caselaws?id=64659 Penalty under section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 is not automatic for a shortfall in compulsory deposit, because section 10(3) requires consideration of the assessee's explanation and a reasonable opportunity of being heard. The Tribunal further noted that compulsory deposit is to be based on the assessee's estimated current income under sections 3(2) and 4(3)(c). Where the assessee's principal income was share income from firms and that income was not available by the due date, estimating the deposit on the basis of the last returned income was supported by reasonable cause. Penalty was therefore not exigible. en-us Thu, 19 Nov 1981 00:00:00 +0530 Wed, 09 Feb 2011 11:50:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64659 Penalty under section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 is not automatic for a shortfall in compulsory deposit, because section 10(3) requires consideration of the assessee's explanation and a reasonable opportunity of being heard. The Tribunal further noted that compulsory deposit is to be based on the assessee's estimated current income under sections 3(2) and 4(3)(c). Where the assessee's principal income was share income from firms and that income was not available by the due date, estimating the deposit on the basis of the last returned income was supported by reasonable cause. Penalty was therefore not exigible. Case-Laws Income Tax Thu, 19 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64659