TMI Blog1975 (11) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... um of Rs. 93,105 as tax under section 140A(3) of the Income-tax Act, 1961, by the 27th October, 1966. Instead of depositing the said amount the assessee wrote a letter to the Income-tax Officer on the 3rd November, 1966, requesting the Income-tax Officer to adjust the advance tax paid amounting to Rs. 65,826 from the total amount of tax due. The officer was also informed that the assessee had difficulties in the matter of depositing the tax within time on account of the number of intervening holidays and also on account of the fact that the funds of the assessee had been depleted on account of payment of bonus to its staff and workers. The assessee sought permission to pay the balance in two equal instalments. The assessee further addres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct in cancelling the penalty inasmuch as the word used in sub-section (1) of section 140A of the Income-tax Act, 1961 is " shall ". It was contended that the provisions of this section were mandatory, and there was no option left to the Income-tax Officer but to to levy a penalty in a case of self-assessment where tax remained outstanding beyond 30 days. It was submitted that if after the expiry of 30 days tax on the basis of voluntary assessment remained unpaid there was no ocassion for extension of time and the Income-tax Officer entitled to levy the penalty. The quantum of the penalty was also sought to be justified on the ground that there was there was no provision for charging any interest under this section. It was contended on be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 143 or section 144 has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards the provisional assessment or regular assessment, as the case may be. (3) If any assessee fails to pay the tax or any part thereof in accordance with the provisions of sub-section (1), he shall, unless a provisional assessment under section 141 or at regular assessment under section 143 or section 144 has been made before the expiry of the thirty days referred to in that sub-section, be liable, by way of penalty, to pay such amount as the Income-tax Officer may direct, so however, that the amount of penalty does not exceed fifty per cent. of the amount of such tax or part, as the case may be: Provided that before l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the revenue that in the facts and circumstances the penalty imposed was justified. The Tribunal has found that facts were before the Income-tax Officer to support the assessee's case that it was not in a position to deposit the tax on the basis of the self-assessment. The officer soon accepted the assessee's request to make a provisional assessment, and the assessee paid the demand on the basis of such provisional assessment. The Tribunal has found that in the facts and circumstances the penalty was not justified, which finding is not challenged as perverse or based on no evidence. The revenue all along proceeded on the sole basis that penalty was imposable in the instant case only by reason of the language of the section and on no oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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