The AO levied the penalty u/s 105 of the Finance Act , 2004 dealing with non-collection and non -deposit of the Securities Transaction Tax (STT) at the rates stipulated . CIT (A) deleted the addition which was affirmed by the Tribunal. On appeal the Court held that the Assessing Officer must come to the conclusion that there was deliberate defiance of the law by the assessee . On facts the Tribunal is justified in deleting the penalty (ITA No. 1171 of 2017 dt . 3-2- 2020 ) (AY. 2006 -07)
PCIT v. National Stock Exchange ( 2020) The Chamber’s Journal – September -P. 107 ( Bom) (HC)
Securities Transaction Tax ( STT) -Finance Act, 2004
S.105: Penalty for non collection and non -deposit of STT- Imposition of penalty is not automatic- Deletion of penalty is held to be justified .[ S.100 , 108 ]