https://www.taxtmi.com/caselaws?id=355189 Penalty for delayed deposit of admitted tax under the U.P. VAT Act was held unsustainable where the assessee showed reasonable cause. The delay was only two days, the assessee had no liquid funds, the explanation had already been accepted by the assessing authority for extension of time, and the tax was later deposited with interest. The Court held that penalty under a provision requiring failure to pay tax "without reasonable cause" is not automatic, and the existence of overdraft facilities does not by itself defeat a bona fide explanation because such facilities are not equivalent to available liquid funds. The revision was allowed and the penalty order was set aside. en-us Mon, 05 Feb 2018 00:00:00 +0530 Mon, 12 Feb 2018 07:16:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=355189 Penalty for delayed deposit of admitted tax under the U.P. VAT Act was held unsustainable where the assessee showed reasonable cause. The delay was only two days, the assessee had no liquid funds, the explanation had already been accepted by the assessing authority for extension of time, and the tax was later deposited with interest. The Court held that penalty under a provision requiring failure to pay tax "without reasonable cause" is not automatic, and the existence of overdraft facilities does not by itself defeat a bona fide explanation because such facilities are not equivalent to available liquid funds. The revision was allowed and the penalty order was set aside. Case-Laws VAT and Sales Tax Mon, 05 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=355189