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2011 (2) TMI 1342 - HC - VAT and Sales TaxImposition of penalty under Section 16(9) of the Bihar Finance Act, 1981 - Held that:- It is an admitted position that even before the Assessing Officer could do the assessment proceeding for the period in question, the Petitioner had deposited the entire admitted amount of tax. There is no finding in the order of the Assessing Authority that the delay in deposit of the tax by the Petitioner could be attributable to any deliberate, wilful or contumacious conduct of the Petitioner. A mere delay in deposit of tax in given circumstances cannot be an item of suspicion that it was backed by a deliberate intention of the Assessee to avoid tax. The accompanying circumstances governing the present case does not in the least comes within such category of cases. The reasons attributed by the Assessing Authority for imposition of penalty as also noted in this judgment, do not satisfy the pre-requisites to the imposition of penalty as envisaged under the provisions of Section 16(9) of the Act of 1981 and/or in the judgment of this Court and the Supreme Court on the issue. Thus imposition of penalty is quashed and set aside. Any deposit made by the Petitioner in pursuance of the order(s) aforesaid shall be refunded and/or adjusted towards the current/future liability of the Petitioner
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