https://www.taxtmi.com/caselaws?id=69755 Penalty for delayed payment under the compulsory deposit scheme is not automatic. Where the statute gives the assessee an opportunity to explain the delay, the explanation must be assessed on its merits, and penalty should not be imposed mechanically. Here, the assessee paid before the date believed applicable and offered a bona fide explanation based on an extended time limit; the record did not show the explanation to be an afterthought or inherently improbable. In the first year of the scheme, with different due dates for different classes of taxpayers, the explanation was accepted as reasonable, and the penalty was deleted. en-us Mon, 21 Apr 1980 00:00:00 +0530 Mon, 11 Apr 2011 18:45:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69755 Penalty for delayed payment under the compulsory deposit scheme is not automatic. Where the statute gives the assessee an opportunity to explain the delay, the explanation must be assessed on its merits, and penalty should not be imposed mechanically. Here, the assessee paid before the date believed applicable and offered a bona fide explanation based on an extended time limit; the record did not show the explanation to be an afterthought or inherently improbable. In the first year of the scheme, with different due dates for different classes of taxpayers, the explanation was accepted as reasonable, and the penalty was deleted. Case-Laws Income Tax Mon, 21 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69755