TMI Blog1996 (3) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... under the provisions of Income-tax Act, 1961. The amount of TDS was deposited in the Government Treasury on 12-5-1989 by all these assessees. However, Form No. 26A was filed late. The position of penalty levied by the Assessing Officer and the penalty sustained by the CIT(A) is given hereunder : -------------------------------------------------------------------- Name of the assessee Penalty levied Penalty sustained by the ITO by the CIT(A) -------------------------------------------------------------------- 1. Mahavir Agency Rs. 5,900 Rs. 2,800 2. Anand Traders Rs. 5,900 Rs. 2,800 3. Mangal Traders Rs. 7,300 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions made by the learned representatives of the parties and have also gone through the orders of the learned departmental authorities as well as the order of the Tribunal cited. 6. In my view, the penalties levied in all the aforesaid cases deserves to be cancelled. The reasons for my taking such a view are stated in the following paragraphs : 6.1 It is an undisputed fact that the amount of tax deducted at source by the assessee was paid within the time allowed under the relevant provisions of Income-tax Act, 1961. There was only a technical and venial breach of the provision contained in rule 37A requiring the assessee to submit an annual return of deduction of tax under section 194A within the time prescribed in the said Rule. The par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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