2016 (6) TMI 800

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....,73,950/-. The assessee filed a return of income without payment of tax. Subsequently, the assessee has paid taxes of Rs. 30 lakhs, Rs. 25 lakhs, Rs. 25 lakhs and Rs. 30 lakhs on 1.10.2012, 5.10.2012, 17.10.2012 & 18.10.2012 respectively leaving a balance of Rs. 4,73,950/-. Hence, the A.O. has issued a notice to the assessee u/s 221(1) r.w.s. 140A(3) of the Income Tax Act, 1961 (hereinafter called as 'the Act') dated 25.10.2012 proposing levy of penalty u/s 221(1) of the Act. The assessee paid the balance amount of Rs. 4,73,950/- on 29.10.2012 and requested the A.O. to drop the penalty proceedings. However, the A.O. did not accept the assessee's explanation and passed the penalty order by levying a penalty of Rs. 1,14,73,950/- being 100% ta....

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....accumulati8on of funds we have made weekly payments towards self assessment tax without any delay and cleared the total liability of Rs. 1,14,73,950/- within a month after filing the ROI. 3. For the Asst. Year 2012-13 we have paid the total tax of Rs. 3,06,18,430/- out of which we have paid an amount to the tune of Rs. 1,91,44,480/- by way of TDS/Advance tax. The marginal delay of one month in payment of self-assessment tax Rs. 114.73 lacs after filing the return of income is due to paucity of funds and recession in the business causing delay in the recoveries. In view of the above, we plead your good selves' office to kindly consider the facts of the case and the genuine difficulty and hardship caused to us and request you to grant r....

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...., within a month, assessee has paid almost all the amounts which are payable on the date of the filing of the return of income. The A.O. was of the opinion that the assessee has violated the provisions of section 221(1) of the Act and accordingly levied the penalty at 100% of tax payable. On appeal, the Ld. CIT(A) by considering the explanations given by the assessee, he has restricted the penalty to 10% of tax payable with an observation that the assessee has paid the taxes even before the issue of the notice by A.O. u/s 221(1) of the Act and complied the tax demand voluntarily. We find that the assessee has paid taxes which are payable along with a return of income, however paid within a month even before the notice issued by the A.O. and....