2005 (5) TMI 22

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r section 256(2) of the Income-tax Act, 1961, (hereinafter referred to as "the Act"), relating to the assessment years 1989-90 and 1990-91 for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct in reducing the penalty imposed under section 272A of the Income-tax Act, 1961, for the assessment years 1989-90 and 1990-91, resorting to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce of law as contended by the appellant appears to be genuine. Ignorance of law is excusable as held in the case reported in Motilal Padampat Sugar Mills Co. Ltd. v. State of U.P. [1979] 118 ITR 326 (SC), further when the tax at source stood deducted and paid in time the default committed by the appellant can only be treated as technical one and hence in view of the decision of the hon'ble Supreme....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d that the amount of penalty for failures in relation to returns under sections 206 and 206C shall not exceed the amount of tax deductible or collectible, as the case may be.' Proviso though came into effect from the 1st October, 1991, yet taking into consideration the legislative change and the judicial hardships to which the assessees were being put, it was held that this proviso was brought ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n deposited within time and only Form No. 26C could not be filed within the time specified, thus the default was only of a technical nature. The Commissioner of Income-tax (Appeals) has deleted the penalty treating the default as of technical nature. Since the Tribunal has set aside the order of the Commissioner of Income-tax (Appeals) deleting the penalty, therefore, this issue is not open for ad....