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2013 (10) TMI 831 - AT - Income TaxPenalty u/s. 221(1) r.w. Section 140A (3) – assessee in default - Held that:- Assessee did not file any reply before the AO and before the FAA it submitted that because of the mistake committed by the members of the staff tax could not be in time - FAA has clearly held that before him the assessee did not furnish any good or sufficient reason - Words 'Good and Sufficient reason' have not been defined in the Act - beyond control of the assessee can be termed sufficient cause - the assessee had not shown any cause as why it could not pay taxes in time - Assessee is a corporate entity paying tax of lacs of Rupees every year - It is not functioning from a remote village - It is not the case that assessee was facing financial crunch and because of that it could not pay taxes in time. Penalty imposed/confirmed by the AO/FAA is in the nature of additional tax for securing compliance with the provisions of the Act - Penal provisions for non-payment of taxes have been incorporated in the Act, as stated earlier, so that the tax is paid, by the assessees, within the time allowed u/s.140A(1) of the Act - income of an assessee belongs to him, but his right is subject to payment of dues to the Sovereign i.e; taxes - State has all the rights to recover taxes and a make reasonable provision to secure payment of tax on due date - the assessee had not offered any good and sufficient reason for not paying taxes on due dates, so FAA was justified in rejecting appeal filed by it - payment of tax, along with interest, after due dates cannot be considered a sufficient cause for adhering to the provisions of section 140A of the Act - the order of the FAA upheld – Decided against Assessee.
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