9911796707
TMI Blog2021 (5) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... pany filed Return of Income for the A.Y. 2009-10 on 29.09.2009 without paying self-assessment tax u/s.140A of the Act declaring total income of Rs. 1,17,83,190. Subsequently, on the scrutiny the assessee's income was determined by the Assessing Officer of Rs. 17,34,74,851 and consequential demand on the income and interest thereon was determined at Rs. 8,51,87,390. The assessee could not pay the demand within the stipulated period, the Assessing Officer has passed order u/s. 221(1) of the Act levying penalty of Rs. 1 lac. Therefore the assessee deemed to be default as per Section 220 of the Income Tax Act, 1961 ('the Act') and the Assessing Officer has initiated penalty proceedings u/s. 221(1) of the Act. Aggrieved by the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he material available on record, we observe that the assessee has filed its Return of Income without payment of self-assessment tax and the case was assessed u/s. 143(3) of the Act and there was a total demand raised by the revenue at Rs. 8,51,87,390 which was not paid by the assessee as per demand notice issued by the Assessing Officer. The assessee also sought for payment of tax in instalments before the CIT(A)-III, Hyderabad and he allowed the assessee for payment in instalments but even the assessee did not pay the instalments granted by the CIT(A)-III, Hyderabad. The Assessing Officer has passed order u/s. 221 of the Act by observing as under : " ORDER U/S.221(1) OF THE I.T. ACT, 1961 : It Is seen from the records of the above asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as an 'assessee in default'. Hence, it was, proposed once again to take coercive action to recover the taxes due from the comp-any and the company was given an opportunity to pay its tax arrears on or before 19-3-20l2 before any coercive action was to be taken. The company has, however, not availed this opportunity also and has not paid the tax arrears even as on date. Hence, a notice u/s 221 dated 09-05-2012 was issued to the company intimating it of its tax arrears as above and asking it to show cause why a penalty u/s 221 should not be levied for non payment of taxes. In this connection, an opportunity of hearing was accorded to the assessee to appear on 22-5-2012 without fall and offer its explanation, If any. The company h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not explain fund availability position on the due date of payment of advance tax as well as on the date of self-assessment tax i.e. date of filing of return. We also observe form the order of the authorities below, the assessment was completed u/s. 144 by rejecting the books of accounts of the assessee which clearly shows that the intention of the assessee was not in favour of the revenue for the payment of tax. It clearly shows that the assessee was not paying the taxes within the stipulated time. Hence the Assessing Officer has rightly imposed the penalty u/s. 221(1) of the Income Tax Act after considering that the assessee is in default for payment of tax. We did not find any substance on the submission of the Authorised Representative. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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