Parties are duty bound to make the necessary disclosures within the stipulated period under the PIT and SAST regulations. Non-disclosures within the stipulated period would attract penalty.
The Tribunal found that the appellants were duty bound to make the necessary disclosures within the stipulated period under the PIT and SAST regulations. Non-disclosures within the stipulated period violated the provisions of the aforesaid regulations and, consequently, the penalty became leviable. Thus, to that extent, the order of the AO holding the appellants guilty of violating the provisions of the PIT and SAST Regulations cannot be faulted and is upheld.
However, considering the factors enumerated under Section 15J of the SEBI Act, the Tribunal found that there was no disproportionate gain or unfair advantage gained by the appellants as a result of the default nor anything has come on record to indicate that the delayed disclosures resulted in a loss caused to an investor. Considering the repetitive nature of the default and the fact that the company has now been wound up and taking into consideration all the facts and circumstances of the case, we think that in the larger interest of justice, the quantum of penalty be reduced to meet the ends of justice.