2009 (4) TMI 875

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..... e-company has failed to show reasonable cause for the delay in deposit of due tax. In the facts and circumstances of the case, the imposition of penalty under the provisions of section 15A(1)(a) of the Act was not justified. The penalty is, therefore, set aside. Appeal allowed.
BHARATI SAPRU , J. BHARATI SAPRU J.--Heard learned senior counsel for the revisionist Sri Bharat Ji Agrawal and Sri B.K. Pandey learned standing counsel for the Department. This revision has been filed against an order of the Trade Tax Tribunal dated February 3, 2006 in second appeal No. 594 of 2003 for the month of May, 2001 (U.P.) arising out of the penalty proceedings initiated against the assessee under section 15A(1)(a) of the U.P. Trade Tax Act, 1948. The .....

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..... deposit of sum was for a period of four days. The amount of tax due was late paid but the interest as demanded was not paid. As such the assessing authority passed penalty order on November 29, 2001. The assessing authority recorded that on the late deposit of tax, the assessee had not paid an interest. Aggrieved by the order of the assessing authority, the assessee filed an appeal before the Deputy Commissioner, who also dismissed the appeal of the assessee by his order dated January 7, 2003. The assessee thereafter filed an appeal under section 10 of the Act before the Trade Tax Tribunal, Ghaziabad, which affirmed the order passed by the two lower authorities by his order dated February 3, 2006. The other facts of the case which are .....

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..... the dealer has failed to furnish the return on its turnover or has not deposited the tax due under the Act without reasonable cause. The court has held that the penalty under the provisions of section 15A(1)(a) of the Act can only be imposed where it is established that the dealer has actually failed to deposit the tax due under the Act without reasonable cause. In the instant case, the explanation of the assessee-company is a plausible one. The assessee has been suffering financial losses continuously for the period of more than five years and hence the company could not pay tax on time. But when the assessee-company paid the tax, it had not paid the interest, which is badly exorbitant. In such circumstances, it cannot be said that the a .....

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