TaxTMI 
TaxTMI 
2004 (10) TMI 572
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....thin the specified time and subsequently deposited the same beyond the specified time. Interest on account of the delay was also deposited. The assessing authority issued notice under section 15A(1)(a) of the Act for levy of penalty on account of delayed deposit of the admitted tax. The applicant contended that the delay in depositing the tax was due to the financial crisis and due to late receipt of challan from the bank. It was explained that the main supply was to the U.S.S.R. and on account of the disintegration of the U.S.S.R. sale was badly affected and the money could not be realised which resulted in a financial crisis. It was explained that on March 31, 1993 a sum of Rs. 19,13,06,159 was due from the creditor. It was subsequently e....
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....ting the tax within the specified time. Learned Standing Counsel supported the order of the Tribunal. I have perused the order of the Tribunal and the authorities below. Section 15A(1)(a) of the Act reads as follows: "15A. Penalties in certain cases.--(1) If the assessing authority is satisfied that any dealer or other person-- (a) has without reasonable cause, failed to furnish the return of his turnover or to furnish it within the time allowed and in the manner prescribed, or to deposit the tax due under this Act before furnishing the return or along with the return, as required under the provisions of this Act; or." To invoke the provision of section 15A(1)(a) of the Act, the assessing authority should see whether the dealer....
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....nt, there was only trifling delay of 9 days and 15 days in the payment of tax and the dealer voluntarily without any action on the part of the assessing officer filed the return, as well as, paid the tax along with the interest at 24 per cent. The interest at 24 per cent is very high and nobody would suffer that interest unless there are good reasons. Penalty under section 15A(1)(a) is leviable if there is no reasonable cause and the burden to prove the absence of a reasonable cause lies on the Revenue. Apart from rejecting the dealer's explanation, it has brought no material on record to establish the absence of a reasonable cause. The approach of the assessing officer that there might be other bank accounts or over draft facilities me....