https://www.taxtmi.com/caselaws?id=393354 Penalty for failure to collect or remit Securities Transaction Tax is not automatic; it depends on the statutory conditions for imposition being satisfied. Section 105 of the Finance (No. 2) Act, 2004 creates the penalty liability, but Section 108 overrides that provision and requires a reasonable opportunity of hearing, along with failure by the assessee to prove reasonable cause for the default. Because penalty is punitive in nature, the assessee's conduct and surrounding circumstances must be separately considered. On the stated facts, those statutory conditions were not met, and the penalty was rightly deleted. en-us Mon, 03 Feb 2020 00:00:00 +0530 Fri, 13 Mar 2020 13:12:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=393354 Penalty for failure to collect or remit Securities Transaction Tax is not automatic; it depends on the statutory conditions for imposition being satisfied. Section 105 of the Finance (No. 2) Act, 2004 creates the penalty liability, but Section 108 overrides that provision and requires a reasonable opportunity of hearing, along with failure by the assessee to prove reasonable cause for the default. Because penalty is punitive in nature, the assessee's conduct and surrounding circumstances must be separately considered. On the stated facts, those statutory conditions were not met, and the penalty was rightly deleted. Case-Laws Income Tax Mon, 03 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=393354