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2018 (4) TMI 1271 - AT - Income TaxPenalty u/s 221(1) - default in paying Self Assessment tax u/s 140A - sufficient and reasonable cause for non payment of tax - Held that:- We find from the records placed before us that the assessee throughout the period commencing from 01.10.09 to 31.03.10 have negative flow of funds as is apparent from fund flow and cash flow statement as reproduced. AO has granted four installments to the assessee of ₹ 8,50,000/- each which were cleared by the assessee along with interest from its account with Standard Chartered Bank which was paid out of the overdraft facility availed from the bank. Looking to the facts and circumstances of the case in totality, we are of the considered view that the assessee was passing through severe financial hardships during the above period which is a sufficient and reasonable cause for non payment of tax. See ITO vs. Devsons (P) Ltd. (2007 (10) TMI 323 - ITAT DELHI-D ) wherein held that penalty imposed before expiry of period granted to the assessee to make the payment of tax was not valid and more so when assessee had shown financial difficulties and has made a reasonable offer for making the payment in installments. - Decided in favour of assessee
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