1985 (1) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....DARY J.-This writ petition is filed by 27 employees of the Bharat Heavy Electricals Limited, Hyderabad. They have challenged in this writ petition, the validity of section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, on the ground that it is arbitrary, unjust and unconstitutional. By Act 38 of 1974, Parliament has enacted the Compulsory Deposit Scheme (Income-tax Payers) Act,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....section. It imposes certain penalties on the assessees for their failure to make compulsory deposits within time. Section 10 says that if, in relation to an assessment year, any person who is liable to make a compulsory deposit has, without reasonable cause, failed to make the compulsory deposit within the time allowed or has made the compulsory deposit within such time, but the deposit so made fa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on the ground of procedural despotism or the imposition of excessive punishment. Section 10 cannot be faulted for those grounds. It imposes no absolute penalty. Reasonable cause for failure to make compulsory deposit in full or in time is acceptable to section 10. It also provides for notice and a hearing before imposition of penalty. Therefore, it does not appear to be excessive. The decisions in....