2015 (1) TMI 14

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.... to be the substantial questions of law:     "{A} "Whether in the facts and circumstances of the case, the ITAT has erred in law in confirming the order of CIT (A) deleting penalty levied under section 140A (3) read with section 221 of the Income tax Act, 1961?"     {B} "Whether in the facts and circumstances of the case, the ITAT was justified in analyzing the accounts of the assessee as on 31st December 2006 and coming to the conclusion that the assessee had incurred huge losses despite the fact that as per provisions of I.T Act, the assessee was liable to pay advance tax or otherwise by 31st March 2006?"     {C} "Whether in the facts and circumstances of the case, the ITAT was justifi....

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....eld that there was sufficient reason for the default on the part of the assessee and accordingly deleted the penalty levied upon the assessee. The revenue carried the matter in appeal before the Tribunal, but failed. 3. Mr. Varun Patel, learned standing counsel for the appellant, assailed the impugned order by submitting that the Tribunal has erred in holding that the assessee had given good and sufficient reasons for the default in paying self assessment tax. It was submitted that the Tribunal had erred in analyzing the accounts of the assessee as on 31st December 2006 and coming to the conclusion that the assessee had incurred huge losses despite the fact that in terms of the provisions of the Income Tax Act, the assessee was liable to....

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....took note of the fact that the revenue itself had granted installments to the assessee, who had subsequently paid up the amount. Considering the totality of the facts and circumstances of the case, the Tribunal was of the view that when there was a good and sufficient reason for the default, no penalty ought to have been levied, more particularly, when the assessee had later on deposited the entire amount. 5. From the findings recorded by the Tribunal, it is apparent that the assessee on account of having incurred heavy losses in share trading was not in a position to make payment of selfassessment tax at the relevant time and the revenue itself had granted installments to the assessee. Having regard to the fact that considering the diff....