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TMI Blog2017 (2) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... only substantial ground is that "Whether ld. CIT(A) erred in reducing the quantum of penalty u/s 221(1) from 100% to 10%." 2. The Brief facts of the case are that the assessee is proprietor of M/s Gunina Ventures, filed return of income for relevant AY on 30.09.2012 declaring total income at Rs. 12,61,13,591/-. On the income declared by the assessee, the tax payable was Rs. 4,25,81,870/- which was payable before filing of return of income. On verification, the Assessing Officer (AO) noticed that the self-assessmnt tax was not paid by assessee before filing return of income. Due to non-payment of self-assessment tax, the assessee was deemed to be assessee in default in respect of tax and interest as both remained unpaid in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty to 10% of tax liablity. 3. We have noticed that the C.O. filed by assessee is beyond 61 days of period of limitation. The assessee along with C.O. filed application for condonation of delay which is further supported by an affidavit of Prashant R. Samdani. In the application, the assessee contended that assessee received notice of appeal by Revenue on 07.07.2015. The assessee could file his C.O. till 06.08.2015. The assessee filed his objection only on 30.09.2015. Thus, there is delay of 60 days in filing the C.O. The contents of the affidavit further disclosed that assessee approached Shri Pradip N. Kapasi, C.A. in the first week of August 2015 and after advice of C.A. assessee decided to file C.O. 4. On application for condon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of CA of the assessee. Though we are not satisfied with the ground of condonation of delay. However, keeping in view the principle of natural justice, we deem it appropriate to condone the delay in filing C.O. and to decide the same on merit. Hence, the application for condonation of delay in filing the C.O. is allowed. 6. We have heard the ld. Departmental Representative (DR) for Revenue and Authorized Representative (AR) of the assessee and perused the material available on record. The Ld. DR for the Revenue argued that assessee failed to pay due tax before filing the return of income. The assessee further failed to pay the amount of due tax despite the notice of initiation of penalty. The assessee was casual in following the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. The assessee during the penalty proceedings assured the AO that he would pay the amount by 31.12.2012. The assessee also had shown the statement of his Bank Account wherein there was no sufficient cash balance. Ld. AR of the assessee would argue that assessee sufficiently explained the circumstances before the AO in the penalty proceedings and the same was sufficiently explained as per 2nd proviso to section 221(1) of the Act. The ld. CIT(A) considered the circumstances and granted the partial relief to the assessee. The assessee is not liable to pay the amount of liability saddled upon him. There was no intentional or deliberate default on the part of assessee. In support of Cross Objections it was argued by the ld. AR of the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liability by 31.12.2012, however, completed by 15.01.2013, therefore, the observations of AO that the assessee has not fulfilled his obligation to pay tax is not correct. The assessee has paid till 31.12.2012 an amount of Rs. 3,77,00,000/- and remaining balance of Rs. 47,76,310/- was paid on 15.01.2013. The ld. CIT(A) also considered the financial constraint of the assessee and observed that the contentions of the assessee that non-deposit of admitted tax liability due to the delay in receipt of payment from MCGM appears to be correct and the assessee tried his best effort to wipe out the tax liability. The ld. CIT(A) considered the totality of the fact and the case history related to the earlier years for AY 2010-11 and 2011-12 observed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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