1981 (2) TMI 132

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee is whether the authorities below rightly imposed or sustained the penalty of Rs. 1,125 under s. 10(1) r/w sub-s. (3) of the same section of Compulsory Deposit Scheme (Income-Tax Payers) Act, 1974 (for short the Act, 1974). The assessee was liable to make a compulsory deposit on or before 15th Dec., 1976 but the deposit was made on 20th Dec., 1976. As there was delay in making the deposit, t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Aggrieved the assessee has come up in appeal to the Tribunal. It was argued by Shri Nanda, the ld. Deptl. Rep. before us that under s. 10, it is not necessary to consider the reasonable cause and that the levy of penalty is automatic, once the deposit is delayed. Firstly, we do not agree with Shri Nanda that penalty under s. 10(1) is automatic, if deposit is delayed. Secondly, the AAC has already....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nity of being heard is given to the assessee. If the argument of the Revenue is accepted then sub-s. (3) of s. 10 providing for a reasonable opportunity would become redundant and a mere formality. The law does not believe in encourage the formalities. It shows that the reasonable opportunity to be given in sub-s (3) of s. 10 is not a mere formality. If it is so, then the assessee may establish th....