TMI Blog2018 (4) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... lties and has made a reasonable offer for making the payment in installments. - Decided in favour of assessee - ITA No.3808/M/2011 - - - Dated:- 27-3-2018 - SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For The Assessee : Dr. Daniel, A.R. For The Revenue : Shri Suman Kumar, D.R. ORDER Per Rajesh Kumar, Accountant Member : The present appeal has been preferred by the assessee against the order dated 16.03.2011 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2009-10. 2. The various grounds raised by the assessee are as under: I. OBJECTION AGAINST LEVY OF PENALTY UNDER SECTION 221(1) OF THE INCOME TAX ACT, 1961, AMOUNTING TO ₹ 7,88,986/- . 1. On the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals), hereinafter referred as the CIT (Appeals), has erred by not deleting the penalty of ₹ 7,88,986/- levied by the Assessing Officer, on the ground that the Self Assessment Tax for the A.Y.2009-10 was not paid before filing the return of Income. 2. The learned CIT (Appeals) failed to consider the financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by observing that no evidences to prove the financial stringencies have been filed and finally imposed penalty equal to 25% of the tax outstanding which worked out to ₹ 7,88,986/-. 5. In the appellate proceedings, the Ld. CIT(A) dismissed the appeal of the assessee after considering the detailed submissions which have been incorporated in para 2.7 of the appellate order by observing and holding as under: 2.8 I have carefully considered the findings of the Assessing Officer and submissions of the appellant. After considering the entire facts, I do not find any merit in the arguments of the appellant. The record does not show that the financial condition of the appellant was so bad that he could not pay tax on the computed income in time. It was required to pay advance tax on the date fixed and ultimately, self assessment tax alongwith return of income. However, it has failed to pay ₹ 31,55,945/-. The situation of financial problem was not brought to the notice of the Assessing Officer before filing the return of income and the appellant had approached the Assessing Officer, after committing the default and given four post dated cheques. The appellant had relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Devsons (P) Ltd. (2008) 113 ATTJ (Del) 615 2. JCIT vs. Viral Laminates (P) Ltd. (2006) 5 SOT 160 (Ahd.) 3. ACIT vs. Avdesh Kumar Parvinder S. Kochar (2008) 117 TTJ (Del) 137 4. Ramchandra Pesticides Pvt. Ltd. vs. CIT (2006) 285 ITR 45 (Karn.) 7. On the other hand, the Ld. D.R., relied heavily on the order of authorities below and submitted that the assessee could not prove before the authorities below that its financial position was so bad that even the taxes could not be paid before filing the return. The Ld. D.R. submitted that the assessee failed to pay the advance taxes on the specific dates and ultimately showing huge amount of tax outstanding to the tune of ₹ 31,55,945/- which remained unpaid even the return of income was filed. The Ld. D.R. contended that the assessee has completely failed to make out any prima-facie case to show their financial stringencies in the business of the assessee and it is only after committing the default by way of non payment on or before filing the return, the assessee issued four post dated cheques in favour of the department and thus, there was no reasonable cause for non imposition of penalty and finally prayed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank Balance as on 1-102009 852,418 Add: Receipts Receipts from Debtors 97,681210 Cash Sales 5,736803 Refund received from Gems and Jewellery Promo. Council 121,898 103,539,911 104,392,329 Less: Payments Paid to Creditors of Raw Material 143,600,161 Paid to Creditors of Services 3,078,896 Payment of Salary to Staff 493,901 Statutory Dues - Prof. Tax, PF, TDS Paid 201,392 Self Assessment Tax Paid 3,400,000 (Paid on 12-03-2010, 1903-2010, 26-03-2010, 2903-2010 of ₹ 8,50,000/-) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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