https://www.taxtmi.com/caselaws?id=69241 Penalty under section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 was treated as not automatic on mere proof of a short delay in making the deposit. The Tribunal applied the principle that a penal provision should not operate mechanically and that the authority must consider whether the default was technical, venial, or otherwise supported by sufficient cause. It held that the hearing and appellate scheme would be undermined if penalty followed invariably, and accepted the assessee's explanation that the delay was small and caused by paucity of funds; penalty was therefore not exigible. en-us Thu, 18 Jan 1979 00:00:00 +0530 Tue, 05 Apr 2011 18:53:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69241 Penalty under section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 was treated as not automatic on mere proof of a short delay in making the deposit. The Tribunal applied the principle that a penal provision should not operate mechanically and that the authority must consider whether the default was technical, venial, or otherwise supported by sufficient cause. It held that the hearing and appellate scheme would be undermined if penalty followed invariably, and accepted the assessee's explanation that the delay was small and caused by paucity of funds; penalty was therefore not exigible. Case-Laws Income Tax Thu, 18 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69241