2013 (8) TMI 971

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....ubmitted that the Company has filed Income Tax Return on 14.10.2010 and determined the Self Assessment Tax Payable for A.Y. 2010-11 on 14.10.2010. Due to severe liquidity crunch affecting the Company, the company was not in a position to pay the tax. There was a huge backlog of Debtors making the cash flow in a negative position. The appellant further submitted that the Debtors Position and Cash/Bank Position enclosed in details, the summary was as follows:     (In Lacs) Month end Debtors Available Credit Limit Oct, 2010 3830.07 39.28 Nov, 2010 3907.89 (31.97) Dec, 2010 3852.38 40.08 Jan, 2011 4029.15 17.01   The Pending liabilities which were due in Nov 10 & D....

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....vailable with the appellant. The appellant submitted that it had a standby line of credit taken by the SBI which was due on Nov. 2010 amounting to Rs. 121.14 lacs the payment of which was required to be made immediately does not transpired any confidence. The appellant had got sufficient funds and the return was filed on 14.10.2010, he could have paid the due tax, however that was not done rather the appellant was trying to settle its dues payable to SBI. Therefore, there is no liquidity crunch and the appellant deliberately chooses not to pay the Self Assessment tax. Under the circumstances, I am of the view that the penalty u/s 221 has rightly been levied by the Ld. AO. The appellant has relied on several case laws which are distinguishab....