AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (10) TMI 216
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....delayed deposit of trade tax/Central sales tax in the month of May, 2003, August, 2003 and February, 2004. 2. These revisions are admitted on the following question of law:- "Whether, on the facts of the case, the Tribunal is legally justified in confirming the penalty under section 15A(1)(a) of the Act?" 3. With the consent of learned counsel for the parties, these revisions are being heard finally. 4. It is submitted by Sri Kapoor that the cheque/pay order/bank draft was deposited by the applicant along with the challan form for the relevant month well in time in the State Bank of India ("the SBI", for short) and it was merely because of time taken in collection of the amount by the SBI that the alleged delay was caused which is not, ....
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....ioned cases, the impugned order of the Tribunal is manifestly unjust and therefore deserves to be set aside. 6. Sri B.K. Pandey, learned standing counsel, submits that the delay in deposit of tax attracts penalty under section 15A(1)(a) of the Act. Under the circumstances the levy of penalty is fully justified. There is no error in the impugned order of the Tribunal. The finding recorded by the Tribunal are findings of fact and as such the revisions deserve to be dismissed. 7. I have carefully considered the submissions of the counsel for the parties. 8. I find that specific grounds were taken by the applicant with complete disclosure of facts before the appellate authority that the bank draft/pay order for the tax amount was deposited w....
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....rt in the case of Commissioner of Income-tax v. Oagle Glass Works Ltd.: [1954] 25 ITR 529 (SC): [1954] 24 Comp Cas. 520 (SC): AIR 1954 SC 429, in which it was held that payment by cheque realised subsequently on the cheque being honoured and encashed relates back to the date of the receipt of the cheque, and in law the date of payment is the date of delivery of the cheque. 11. Again this question arose with reference to payment of rent by tenant to landlord through cheque in Damadilal v. Parashram: AIR 1976 SC 2229. It was held as follows:- "... the defendants tendered the amount in arrears by cheque within the prescribed time. The question is whether this was a lawful tender. It is well established that a cheque sent in payment of a debt....
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....of K. Venkata Reddy v. Commissioner of Income-tax: [2001] 250 ITR 147 (AP) has held with reference to Kar Vivad Samadhan Scheme, 1998 in pursuance of the Finance Act No. 2 of 1998 that payment of any amount by cheque would be deemed to have been made on the date of presentation of the cheque, if it is not dishonoured. 15. From the above authorities coupled with rule 48 of the U.P. Trade Tax Rules it is clear that the date of payment through cheque is the date when the cheque was presented provided it is encashed. To put it differently the payment shall relate back to the date of presentation of the cheque to the Department. 16. A perusal of the aforesaid rules makes it clear that all dealer may deposit tax, penalty, interest, compensation....
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....The same was properly explained by the applicant. There was no occasion before the assessing authority to levy penalty for alleged delay in deposit of tax for the relevant months. 17. In the case of Premier Vinyl Flooring Ltd., Sikandrabad, Bulandshahr v. Commissioner of Sales Tax: [2004] 137 STC 366 (All.): [2004] UPTC 468, this court while considering similar circumstances held in para 16 as under (page 373 in 137 STC):- "16. Rule 41 of the U.P. Sales Tax Rules provides filing of the monthly returns and deposit of tax due thereon on the basis of the monthly returns. Except as provided in the proviso to rule 41 the return for the month of February all other monthly returns have to be filed before the expiry of the next succeeding month. ....