Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 399 - AT - Income TaxPenalty u/s 221 - non payment of self assessment tax till the date of filling of return of income - sufficient and reasonable cause for not paying the admitted tax liability either at the time of filing of return of income or before the issue of notice u/s 221(1) - HELD THAT:- Assessee could not pay the self assessment tax liability of ₹ 8,06,90,485/- at the time of return of income, however the same has been paid subsequently on installment over a period of time as per the details incorporated above. Assessee had given very elaborate reasons before the authorities below that due to huge financial crunch and hardships, assessee did not had any liquidity to pay the self assessment tax liability. All these facts and explanation have been duly incorporated before the CIT(A) as discussed above. There are umpteen number of judgments, wherein it has been held that financial stringency is considered to be good and sufficient cause for sufficiency of reason for not levying penalty u/s 221(1). AO has also not given any reasoning to controvert the assessee’s reasons regarding paucity of funds and if Assessee Company had sufficient reasons for not paying the self assessment tax at time, then assessee could not be considered as willful defaulter on which no penalty should be levied. Apart from that, Ld. Counsel has pointed out that on the same reasons, the department has given the payment plan to the assessee for making the payments. CIT –VI vide order dated 28.12.2012 on stay of collection of demand has given the direction for payment of installments though in some other matter. Now the entire self assessment tax has been paid and the entire liability has been discharged. Thus, order of the CIT(A) deleting the penalty is upheld. Consequently, the grounds raised by the revenue is dismissed.
|