TMI Blog2016 (4) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... 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hardship is further buttressed by the observation of the CIT(A) that for making the payment of taxes the assessee had withdrawn margin money placed by it with various brokers.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 pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 on 31.01.2013, was of the opinion that the assessee did not make payment of self assessment tax before filing of the return of income, as required by the provisions of section 140A(3), without any reasonable cause or sufficient reasons. In this view of the matter, the AO proceeded to levy penalty under section 221 r.w.s. 140A(3) of the Act vide order dated 30.04.2012 at the maximum limit of ₹ 12,69,268/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the levy of penalty at ₹ 1,00,000/-, thereby allowing the assessee relief of ₹ 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 under section 221 r.w.s. 140A of the IT Act to ₹ 1,00,000/- overlooking the facts that inspite of receiving notice under section 221 of the IT Act the assessee failed to pay the whole amount of Self Assessment tax on the profit already earned by it. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in restricting the penalty under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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