2020 (3) TMI 498

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....Act" hereinafter) against the order dated 4th April, 2016 passed by the Income Tax Appellate Tribunal, Mumbai Bench "B", Mumbai (briefly "the Tribunal" hereinafter) in Security Tax Appeal No.01/Mum/2013 for the financial year 2006-07. 3. In this appeal the appellant has proposed the following two questions as substantial questions of law:- (i) Whether in the facts and in the circumstances of the case and in law the Tribunal erred in deleting the penalty levied under Section 105(a) of the Securities Transaction Tax (STT) falling under Chapter VII of Finance (No.2) Act, 2004? (ii) Whether in the facts and in the circumstances of the case and in law the Tribunal erred in deleting the penalty levied under Section 105(a) of the Securities T....

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....ng anything contained in the provisions of Section 105 or Section 106 or Section 107, no penalty shall be imposable for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure and as per the proviso no order imposing a penalty shall be made unless the assessee had been given a reasonable opportunity of being heard. 8. If Section 105 is read in isolation, it would appear that failure to pay the tax by the assessee i.e., either failure to collect the STT or failure to deposit the STT so collected to the credit of the Central Government would automatically lead to imposition of penalty. This is so because of the use of the word "shall" in that section. However, Section 108 sta....