TaxTMI 
TaxTMI 
2015 (1) TMI 299
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.... orders relating to the assessment years 2003-04 to 2005-06; orders passed u/s 201(1) & 201(1A) relating to the assessment years 2003-04 to 2006-07; penalty orders passed u/s 271C of the Act for assessment years 2003-04 to 2006-07 and the penalty orders passed u/s 272A(2)(c) of the Act for assessment years 2003-04 to 2006-07. 2. None appeared on behalf of the assessee even though the notice of hearing was served upon the assessee by registered post. Hence, we proceed to dispose of these appeals ex-parte, without the presence of the assessee. Since all these appeals were heard together, they are being disposed of by this common order, for the sake of convenience. (A) ITA No. 2039, 2041 & 2049/Mum/ 2013(AYs:2003-04 to 2005-06): 3. We....
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....al statements, it was noticed that the Unsecured loans balance has increased by the following amounts in each of the three years mentioned above. Assessment year 2003-04 - Rs. 1,49,00,511/- Assessment year 2004-05 - Rs. 1,01,00,186/- Assessment year 2005-06 - Rs. 69,62,691/- Since the assessee did not furnish any details with regard to the above said loans, the assessing officer assessed the above said amounts as income of the assessee in the respective assessment years. The Ld CIT(A) also confirmed the assessment orders, since the assessee could not prove the loan credits in terms of sec. 68 of the Act. 4. We have heard Ld D.R and perused the record. We notice that the assessee furnished before Ld CIT(A) certain details rela....
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.... Act for assessment years 2003-04 to 2006-07. As stated earlier, the TDS officials noticed that the assessee did not remit the tax deducted by it at source. Further the assessee did not deduct tax at source in respect of certain payments. Hence, the ITO (TDS) passed orders raising following demand:- Assessment Year Demand u/s 201(1) Interest u/s 201(1A) 2003-04 3,36,938 1,62,984 2004-05 83,372 35,235 2005-06 6,04,451 1,81,884 2006-07 76,373 15,063 The assessee challenged the orders passed by the ITO(TDS) by filing appeals before Ld CIT(A), but could not succeed. Hence, the assessee has filed these appeals before us. 6. We have heard Ld D.R and perused the record. From the orders passed by Ld CIT(A), we notice t....
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....urce, the Addl. Commissioner of tax imposed penalty u/s 271C of the Act upon the assessee as detailed below:- Asst. Year Failure to deduct TDS Failure to pay TDS Total 2003-04 23,413 3,13,525 3,36,938 2004-05 50,758 32,614 83,372 2005-06 3,19,065 2,85,386 6,04,451 2006-07 54,953 21,420 76,373 The Ld CIT(A) also confirmed the penalty imposed by the Additional Commissioner. Aggrieved, the assessee has filed these appeals before us. 8. We have heard Ld D.R and perused the record. As stated earlier, the Additional Commissioner has imposed penalty for failure to remit the tax deducted at source also. However, a careful reading of the provisions of sec. 271C would show that the penalty under that section is lev....
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....s cumulatively show that the assessee appears to be in deep financial crisis. 10. The Ld CIT(A) has taken the view that the financial problems and heavy losses do not constitute reasonable cause. We tend to disagree with his views. The financial problem, i.e., lack of money, in our view, may be considered reasonable cause, since the financial problem has made the staffs and Chartered Accountant to leave the assessee company. Hence, there is merit in the submission of the assessee that it did not get proper assistance to comply with the tax laws. Accordingly, we are of the view that the assessee has shown that there was reasonable cause for his failure to deduct tax at source. 11. Accordingly, we set aside the orders of Ld CIT(A) and d....