1979 (11) TMI 160 - AT - Income Tax

Summary

The ITAT Madras-C dismissed the Revenue's appeal against the cancellation of a penalty of Rs. 600 imposed under the Compulsory Deposit (IT Payers) Act, 1974. The assessee's explanation for the delay in paying the deposit was accepted by the AAC, who found reasonable cause for the delay. The Tribunal held that penalties under the Act can be cancelled if reasonable cause is shown, and since the assessee had a valid explanation, the penalty was rightly cancelled.