Allowing the appeals the Tribunal stated that  once the assessee has stated on affidavit and given an undertaking that the assessee had not paid any amount or deducted any tax at source on any sum during these assessment years for which it was required to submit form 26Q, the levy of penalty for default of delivering form 26Q was invalid and consequently the penalty order passed by the Assessing Officer was bad in law, ab initio. Once the Assessing Officer had accepted the fact that the assessee was not required to deduct tax at source or submit form 26Q the initiation of the penalty by the Assessing Officer for such a non-existing default was invalid. The invalid initiation of the proceedings vitiated the entire proceedings and consequently the penalty orders passed under section 272A(2)(k) based on absolutely non-existing grounds were not sustainable in law. (AY.2008-09 to 2012-13)