ITO Vs. DISHERGARH POWER SUPPLY CO. LTD.

JUDGEMENT

(1.) THIS appeal filed by the revenue is directed against the order dated 30 -6 -1994, passed by the Commissioner (Appeals) Calcutta VI, in the matter of penalty under section 271C for the financial year 1991 -92. Revenue is aggrieved of Commissioner (Appeals)'s deleting penalty of Rs. 1,20,000 imposed by the Deputy Commissioner, Range 21, Calcutta.

(2.) RIVAL contentions are heard, orders of the authorities carefully perused and relevant legal provisions deliberated upon.

(3.) IN this case, there was admittedly a short -deduction of tax at source from dividends, and that such a short -deduction amounts to Rs. 1,20,000. This short -deduction is attributed to a programming error. It appears that the computer was programmed to print tax amount in five figures (before decimal points) and surcharge amount in four figures (before decimal points) since, apparently due to a briefing error, the programmer could not visualise that some tax deduction amounts will be more than Rs. 99,999 or that some surcharge amounts will be more than Rs. 9,999. However, there were two cases where these parameters were proved wanting -in the case of Andrew Yule and Co. Ltd. (hereinafter referred to as the AYCL) and Bengal Coal Co. Ltd. (hereinafter referred to as the BCCL), where the relevant details were as follows :