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2014 (5) TMI 927 - AT - Income TaxRestriction of penalty u/s 140A(3) of the Act – Unpaid amount after expiry of period in demand notice – Held that:- CIT(A) has rightly determined the appeal to restrict the penalty at 25% tax liability of the assessee and gave relief of 75% of the tax liability - the default is committed the assessee and he became the assessee is default and cannot take shelter under any reason or circumstances - It is quite a vague reason that the appellant was facing financial crises and that too without any proof and evidence - the tax and interest have been paid subsequently that will not cur the defect of assessee in default u/s 140A(3) - the assessee had paid the entire amount of tax before issuance of show cause the intention to pay cannot be doubted and therefore does not deserve the maximum penalty – but, the assessee cannot escape from the liability to pay penalty as the intention of the legislature regarding payment of tax is to pay as you earn - the assessee has earned substantial income in the year but he did not pay the due tax within the stipulated time after service of demand notice - Neither any reasonable cause has been shown nor substantiated and CIT(A) appears to have given relief of 75% of the amount of penalty imposed by the AO while taking a very lenient view – the relief already granted by CIT(A) is sufficient – Decided against Assessee.
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