The assessee was the National Stock Exchange of India Limited. The AO expressed apprehension that there was some under-collection of securities transaction tax by the assessee in respect of certain institutional investors such as foreign institutional investors. The AO made an enquiry on sample basis amongst the brokers registered with the assessee. According to the AO there was discrepancy between the total amount of securities transaction tax collected by at least by nine brokers from their foreign institutional investors, and the amount of securities transaction tax collected by the assessee. After considering the response of the assessee the AO passed an assessment order raising securities transaction tax collectible by the assessee by an additional amount of Rs. 5 crores over and above the securities transaction tax collected and deposited by the assessee during the year under consideration. Penalty proceedings were also initiated. The Tribunal deleted the addition made on this count as modified by the first appellate authority, holding that the assessee had not committed any default and that under the statute the assessee was not liable for any alleged short deduction of securities transaction tax. Consequently, the levy of interest and penalty were also deleted. On appeal  dismissing the appeal the Court held that the  Tribunal had returned a finding of fact that the securities transaction tax collected by the assessee was through and under the client codes of the member brokers and the collected securities transaction tax had been credited into the account of the Central Government. Hence the deletion of the addition and the consequent interest and penalty were justified.