2014 (4) TMI 366

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..... twice the amount deducted, but not so deposited in Government Treasury – Here amount deducted was deposited into Government Treasury - Before that simultaneously with the deductions an attempt was made to deposit the deducted amount, but the same could not be deposited as the banker of the AO did not agree to accept an outstation bankers draft - The fact remains that for delayed payment, assessee has already paid statutory interest. Authorities below did not exercise their discretion of imposing penalty, this court set aside the order of the AO imposing penalty, the appellate order as well as the order of the Tribunal – Matter could have been remit, but since it is pending since 2006, we apply the thumb rule and assess the penalty at & .....

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..... the name of the Assessing Officer and went to deposit the amount in the bank accounts of the Assessing Officer, but the banker of the Assessing Officer refused to accept the same as they were outstation bankers drafts, despite the assessee offering to pay collection charges to the banker of the Assessing Officer separately in respect of those bankers drafts. It was also not in dispute that the Assessing Officer ultimately denoted to the assessee a particular banker to whom again an outstation draft was deposited on 28th April, 2006. The question is, in the background of aforementioned facts, can it be said that the action on the part of the assessee is such that the same demonstrated animus or ill will or deliberate refusal to discharge its .....

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..... r. Before that simultaneously with the deductions an attempt was made to deposit the deducted amount, but for the reasons indicated above the same could not be deposited as the banker of the Assessing Officer did not agree to accept an outstation bankers draft despite the assessee offering to pay the collection charges. In the matter of using discretion, it was obligatory on the part of the Taxing Authorities to look into this conduct on the part of the assessee. The fact remains that for delayed payment, assessee has already paid statutory interest. 4. In the circumstances, we are of the view that the authorities below did not exercise their discretion of imposing penalty in the background of the factual matrix of the case and, as such, .....

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