https://www.taxtmi.com/caselaws?id=266136 The Appellate Tribunal upheld the Commissioner of Income-tax (Appeals)'s decision to cancel the penalty imposed under section 221(1) of the Income-tax Act, 1961 on the assessee for non-payment of self-assessment tax due to financial constraints. The Tribunal found that the Revenue failed to demonstrate the availability of sufficient funds to meet the tax demand and did not provide evidence of any diversion of funds for non-business purposes, leading to the dismissal of the Revenue's appeals. This case underscores the significance of considering financial difficulties as a legitimate justification for tax non-payment and the requirement for substantiating penalty imposition with concrete proof. en-us Wed, 25 Mar 2015 00:00:00 +0530 Sat, 17 Oct 2015 23:27:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=266136 The Appellate Tribunal upheld the Commissioner of Income-tax (Appeals)'s decision to cancel the penalty imposed under section 221(1) of the Income-tax Act, 1961 on the assessee for non-payment of self-assessment tax due to financial constraints. The Tribunal found that the Revenue failed to demonstrate the availability of sufficient funds to meet the tax demand and did not provide evidence of any diversion of funds for non-business purposes, leading to the dismissal of the Revenue's appeals. This case underscores the significance of considering financial difficulties as a legitimate justification for tax non-payment and the requirement for substantiating penalty imposition with concrete proof. Case-Laws Income Tax Wed, 25 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=266136