9911796707
TMI Blog2016 (4) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. On examination thereof, the Assessing Officer ('AO') noticed that the assessee had not paid the self assessment tax of Rs. 12,69,268/- due as per the provisions of section 140A(3) of the Income Tax Act, 1961 (in short 'the Act'), before filing the return of income for A.Y. 2011-12. In this regard, the AO initiated penalty proceedings under section 221 r.w.s. 140A(3) of the Act and called for the assessee's explanation in the matter. The assessee's submissions that it was facing financial hardship due to heavy losses incurred in the capital market did not find favour with the AO. The AO, observing that the entire self assessment tax was paid by the assessee only after the assessee's bank account was attached o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 22.11.2011 to 09.03.2012 by withdrawing margin money placed with various brokers. The learned CIT(A) also observed that the AO's levy of maximum penalty, to the extent of tax arrears at the very first instant, appeared to be excessive, especially when taking into account the fact that the assessee actually faced severe financial constraints. Observing thus, the learned CIT(A) confirmed the levy of penalty at Rs. 1,00,000/-, thereby allowing the assessee relief of Rs. 11,69,268/-. 3. Revenue, being aggrieved by the order of the CIT(A)-6, Mumbai dated 13.05.2013, has preferred this appeal raising the following grounds: - "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in restricting the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty it faced. 3.1.1 It is seen from a perusal of the impugned order of the learned CIT(A) that on appeal the assessee once again reiterated its submission that the default in payment of self assessment taxes was due to severe financial hardship and liquidity pressure due to heavy losses incurred in the capital market. We find that the 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taxes in six installments from 22.11.2011 to 09.03.2012 were made by margin moneys deposited with various brokers being withdrawn by the assessee.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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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