https://www.taxtmi.com/caselaws?id=25965 Section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 was treated as a machinery provision to enforce timely and full compulsory deposits, not as an absolute penalty clause. Liability arose only when default occurred without reasonable cause, and the scheme also required notice and hearing before penalty could be imposed. On that basis, the Andhra Pradesh High Court rejected the challenge that the provision was arbitrary, unjust, or unconstitutional, and upheld Section 10 as a valid enforcement measure for the taxing scheme. en-us Mon, 21 Jan 1985 00:00:00 +0530 Tue, 02 Feb 2010 10:21:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25965 Section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 was treated as a machinery provision to enforce timely and full compulsory deposits, not as an absolute penalty clause. Liability arose only when default occurred without reasonable cause, and the scheme also required notice and hearing before penalty could be imposed. On that basis, the Andhra Pradesh High Court rejected the challenge that the provision was arbitrary, unjust, or unconstitutional, and upheld Section 10 as a valid enforcement measure for the taxing scheme. Case-Laws Income Tax Mon, 21 Jan 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25965