Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 340 - ITAT HYDERABADDeletion of penalty u/s 221(1) of the Act – Return filed without paying the tax liability - Held that:- The fact is evident from the provisions of section 221(1) of the Act, wherein, not only the opportunity of being heard has been provided to the assessee but also the AO has been vested with power to not impose penalty if assessee proves to the satisfaction of the AO that the default was for good and sufficient cause - the assessee has explained the cause for not paying the admitted tax at the time of filing of return. -The cause shown by the assessee cannot be brushed aside - the assessee has paid a total amount towards admitted tax liability and interest u/s 234B & 234C of the Act – thus, there is no prejudice to the department since the assessee has not only discharged the tax liability but has also paid the interest - the action of the CIT(A) in deleting the penalty upon considering the explanation of the assessee cannot be faulted with, as there was a reasonable cause for not paying the admitted tax liability at the time of filing of return of income – thus, there is no reason to interfere with the order of the CIT(A) – Decided against Revenue.
|