9911796707
TMI Blog2003 (1) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... d on 27.7.1990 alongwith the interest. Likewise, for the month of May, 1990, applicant has admitted tax liability at ₹ 1844/- which was required to be deposited by 30th June, 1990. This amount was also deposited on 27.7.1990 alongwith the interest. The Assessing Authority issued notices under Section 15 (1) (a) of the Act, on the ground that the admitted tax have not been deposited within the specified time. The applicant filed reply of the Show-cause-notice. Apart from various reasons given in the reply, one of the reason given was that the tax could not be deposited due to shortage of fund and the same was deposited alongwith the interest on 27.7.1990. It has also been stated that there was no malafide on the part of applicant in de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has, without reasonable cause, failed to furnish the return of his turnover or to furnish it within the time allowed and in the manner prescribed, or to deposit the tax due under this Act, before furnishing the return or alongwith the return as required under the provisions of this Act ;or. In the present case, applicant has given explanation that due to paucity of fund, the amount could not be deposited within the specified time which was subsequently deposited alongwith the interest. This explanation has not been disputed by any of the authorities. In my opinion, the applicant was able to make out the case of the reasonable cause and in as much as no case of malafide intentions has been made out and accordingly, the penalty is not j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... @ 24%. The interest @ 24% is very high and nobody would suffer that interest unless there are good reasons. Penalty under Section15 A (1) (a) is leviable if there is no reasonable cause and the burden to prove the absence of a reasonable cause lies on the revenue. Apart from rejecting the dealer's explanation, it has brought no material on record to establish the absence of a reasonable cause. The approach of the assessing officer that there might be other bank accounts or over draft facilities merely shows that the approach is merely conjectural. (3) As is evident the default was trifling and the State has not suffered any loss. On the other hand it has gained by earning 24% interest. Therefore, there was no justification for lev ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
