2015 (10) TMI 1411

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..... ration thus cancelled penalty - Held that:- Though several grounds were raised before us, the learned Departmental representative was unable to point out as to whether the assessee had sufficient cash/ bank balance so as to meet the tax demand. The learned Departmental representative also could not point out as to whether any funds were diverted for non-business purposes at the relevant point of t .....

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..... Appeals)-21, Mumbai. 2. Admitted facts are that though the assessee determined the self-assessment tax it did not make the payment within the stipulated period and hence notice under section 221 of the Income-tax Act, 1961, was issued by the Assessing Officer, in response to which it was submitted that due to the financial crunch the assessee was not able to pay the tax. 3. The Assessing Off .....

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..... has to be considered in the backdrop of the circumstances of the case. 5. Having regard to the circumstances of the case the learned Commissioner of Income-tax (Appeals) observed that the assessee was having meagre cash and current balances and the assessee was in financial constraints during the year under consideration. He also relied upon several case law in support of his conclusion that if .....

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