TaxTMI 
TaxTMI 
2014 (8) TMI 483
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.... Ld. CIT(A) has failed to appreciate that even filing of revised return does not in any manner condone the delay or default in payment of advance tax and Section 140A(1) read with Section 140A(3) would continue to apply to such default or delay. 4. The Ld. CIT(A) has erred in law and on facts in deleting the penalty of Rs. 1,24,35,720/- u/s 140A(3)/221 of the I.T Act, 1961 without appreciating the facts that as per explanation to Section 221 of the IT Act, the assessee shall not cease to be liable to any penalty merely by the reason that before levy of such penalty such tax was paid. 5. The ld. CIT(A) has erred in law and on facts in deleting the penalty of Rs. 1,24,35,720/- u/s 140A(3)/221 of the IT Act, 1961 without appreciating that the facts of the case are different from the cases on which the Id. CIT(A) has relied. 6. The Ld. CIT(A) has erred in law and on facts without appreciating the facts that the revised return cannot be used as a device to circumvent penal provisions of the law and filing of such revised return does not in any manner cure the assesse's default? 7. The order of th....
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....r the return of income filed (supra). iii) that the A.O, did not initiate proceedings u/s 140A(3) against non-payment of admitted tax liability. iv) that the assessee accompany filed a revised return of income u/s 139(5) on 26.09.2009. v) that the assessee company had paid all taxes as admitted by it in its revised return of income before filing the revised return of income. vi) that the A.O. has taken cognizance of the said revised return of income since the asstt. has been made on the income as returned in that revised return. vii) that there was no tax liability due on the admitted income when the assessee company filed its revised return of income on 26.09.2009. viii) that the A.O. initiated proceedings u/s 140A(3) for not having paid the admitted tax liability as per the original return of income. 3.3.2 In this connection, apart from other arguments, the appellant company has brought ....
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....t section 140A(3) of the Act can only be invoked where the assessee fails to pay the whole or any part of such tax or interest or both in accordance with the provisions of sub-section (1) of section 140A of the Act, but in the instant case return was filed as per sub-section (1) of section 140A of the Act and at the time of filing of the return of income, there was no tax liability, as the assessee has paid the admitted tax. Therefore, penalty under section 140A(3) of the Act cannot be levied. 7. Having carefully examined the orders of the lower authorities, we find that the original return was filed in time i.e. before the due date of filing of return under section 139(1) of the Act. Undisputedly, at the time of filing of the original return, the admitted tax liability was not paid. The original return was revised by filing a revised return under section 139(5) of the Act and the same was accepted by the Assessing Officer for completing the assessment. 8. Since the controversy revolves around the applicability of provisions of section 140A(3) of the Act for imposing penalty for nonpayment of admitted tax liability while filing the original return of income, we feel it proper....
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....on 115JD; (ii) under section 115WK shall be computed on the amount of tax on the value of the fringe benefits as declared in the return as reduced by the advance tax, paid, if any. 3(1B) For the purposes of sub-section (1), interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax. 5Explanation.-For the purposes of this sub-section, "assessed tax" means the tax on the total income as declared in the return as reduced by the amount of,-- (i) tax deducted or collected at source, in accordance with the provisions of Chapter XVII, on any income which is subject to such deduction or collection and which is taken into account in computing such total income ; (ii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India ; (iii) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that sect....