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2015 (6) TMI 455 - AT - Income TaxPenalty levied under section 221(1) - CIT(A) reduced the penalty to 5% of the self assessment tax - Held that:- In the instant case, the only reason furnished by the assessee for non-payment of tax was that it was not having liquid funds and all its funds were locked in shares and securities. However, the Ld CIT(A) has expressed the view in paragraph 4.10 of his order that the financial position of the assessee is sound, since it had made huge investment in shares and also by way of providing loans. In any case, the assessee did not furnish any document either before us or before the tax authorities to support of its stand that it was not having liquid funds. Hence, we are of the view that the assessee has failed to furnish any good and sufficient reason for non-payment of self assessment tax. As the assessee has paid the self assessment tax before March, 2011, i.e., within five months from the date of filing of return of income. Under these set of facts, the penalty @ 5% of self assessment tax confirmed by the Ld CIT(A) also appears to be on the higher side. Hence, in order to put this matter to rest, we are of the view that the penalty to be levied u/s 221(1) of the Act should be restricted to 2.5% of the self assessment tax. - Decided partly in favour of assessee.
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