TaxTMI 
TaxTMI 
2014 (5) TMI 1
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.... in brief as emerged from the corresponding penalty order passed u/s.140A(3) were that the assessee-firm has filed a return of income for A.Y. 2006-07 declaring an income of Rs.1,44,99,740/-. It was summarily assessed u/s.143(1) dated 26.03.2008. There was no self assessment tax paid by the assessee as prescribed u/s.140A of IT Act. As a result, a demand of Rs.43,99,051/- was raised against the assessee. It is worth to mention that the self-assessment which was required to be paid by the assessee was also Rs.43,99,051/-. Due to said failure on the part of the assessee, the assessee was treated in default and attracted the penalty u/s.140A(3) of IT Act. The assessee's explanation was that due to losses he has no fund to make the payment, hen....
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.... deposited the impugned tax, subsequently in the following manner:- Sr. No. Amount Date 1. 2,50,000/- 28.03.2009 2. 8,50,000/- 28.03.2009 3. 2,50,000/- 15.04.2009 4. 87,000/- 20.08.2009 5. 20,00,000/- 29.08.2009 6. 9,62,051/- 10.09.2009 Total 43,99,051/- 4.1 We have also examined the relevant provision, according to which Section 140A(3) says that if an assessee fails to pay the whole or any part of tax or interest in accordance with provision of sub Section (1) of Section 140A then he shall be deemed to put an assessee in default. Section 221 has defined penalty when the assessee is in default. Sub Section 1 of Section 221 prescribes that when an assessee is in default or is deemed to be in default in ....
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....ade u/s.143(1) the due date of filing of return for A.Y. 2006-07 was 31.12.2006, however, the return was filed on 29th of March, 2007. The assessment u/s.143(1) was made on 26th of March, 2008. The assessee has furnished a balance sheet drawn as on 31st of December, 2006 and demonstrated that there was heavy losses incurred in share trading to the tune of Rs.1,36,46,928/-. The assessee had cash in hand of only Rs.47,873/-. Likewise, in the bank accounts, the balance was only Rs.8,848/-. There was heavy current liabilities against the investment in shares. Due to the said reason, the assessee has no liquid funds to make the payment of self-assessment although he had earned profit in the financial year 2005-06 but by the time he was required ....