Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 296 - AT - Income TaxPenalty under section 221 r.w.s. 140A(3) - levy the maximum penalty - Penalty payable when tax in default - Held that:- Examination by the learned CIT(A) of the assessee's bank account, for the period under consideration, evidenced that the assessee did not have sufficient funds therein and that the payment of taxes in six installments from 22.11.2011 to 09.03.2012 were made by margin moneys deposited with various brokers being withdrawn by the assessee. Before us, except for reiterating the ground raised, Revenue had not been able to controvert the above factual findings of the learned CIT(A) that the assessee was in severe financial hardship in the said period, as evidenced by the fact that when the AO attached the assessee's bank account, the balance therein was only ₹ 48,487/-. Financial hardship is further buttressed by the observation of the CIT(A) that for making the payment of taxes the assessee had withdrawn margin money placed by it with various brokers. Revenue has also not been able to justify before us, as to why, in these factual circumstances, the AO proceeded to levy the maximum penalty, i.e. to the extent of tax arrears. In these above factual circumstances, we concur with the view of the learned CIT(A) that the AO's action in levying the penalty under section 221 r.w.s. 140A(3) of the Act on the maximum amount of tax payable appears to be excessive, especially considering the severe financial constraints faced by the assessee and the fact that the payment of tax in six installments from 22.11.2011 to 09.03.2012 was made by withdrawing margin money kept with various brokers. In this view of the matter, we uphold the order of the learned CIT(A) in confirming the penalty levied on the assessee under section 221 r.w.s. 140A(3) of the Act to the extent of ₹ 1,00,000/- only. - Decided against revenue
|