2007 (8) TMI 735

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.... passed by the Income-tax Appellate Tribunal, Delhi Bench 'D' in ITA Nos. 2260/Delhi/2004 and 2261/Delhi/2004 for the financial years 2001-02 and 2002-03. 2. The only issue that arises in this case is with regard to the quantum of penalty for failure on the part of the assessee to deposit TDS. The Assessing Officer required the assessee to pay 100 per cent penalty under section 221 of the Income-....

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....this was only the first such instance of default committed by the assessee. 5. The Gauhati High Court in Braja Lal Bamli v. State of Tripura [1990] 78 STC 283 as well as the Kerala High Court in the case of K. Rajendran Nair v. State of Kerala [1999] 116 STC 266 took the view that the maximum penalty should not be imposed mechanically but only for discernible reasons. The Gauhati High Court held ....