TaxTMI 
TaxTMI 
2018 (6) TMI 835
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....tion 221 of the Income-tax Act, 1961 (in short 'the Act'). 2. Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the Assessing Officer leived penalty under Section 221 of the Act since the assessee could not pay the self assessment tax of Rs. 65,43,850/-. According to the Ld. counsel, the assessee was in great financial hardship. In fact, the assessee has paid Rs. 46 lakhs on 14.03.2015 and another sum of Rs. 19,32,225/- on 24.04.2015 and the balance was also paid along with interest under Section 234A, 234B and 234C of the Act over and above the taxes due. According to the Ld. counsel, as on date, no tax was due to be paid. 3. Shri S. Sridhar, the Ld.counsel for the assessee, further submitted that in fact, the ....
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....n identical set of facts, the Madras High Court found that the appeal is maintainable. Therefore, according to the Ld. counsel, the CIT(Appeals) is not correct in rejecting the appeal of the assessee. 5. On the contrary, Shri Asish Tripathy, the Ld. Departmental Representative, submitted that the assessee could not pay the self assessment tax of Rs. 65,43,850/-. Mere payment of amount subsequently cannot be a reason for not levying penalty. According to the Ld. D.R., there was no reasonable cause for not paying self assessment tax. Hence, the Assessing Officer in addition to interest has also levied penalty under Section 221 of the Act, which was rightly confirmed by the CIT(Appeals). Referring to the judgment of Madras High Court in the....
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....act, the Madras High Court has observed as follows:- "Though there is no limitation on the exercise of the appellate power in the statute on the ground that the assessee had invoked the revisional power unsuccessfully, it is contended for the Revenue that such a limitation should be read into the provision dealing with appeals under the Income-tax Act. There is no provision in the Act in express terms, which supports the arguments so advanced by the Revenue. It is not disputed that the provisions dealing with the appellate authorities do not bar an appellant from invoking the jurisdiction, if he had invoked revisional jurisdiction, even though for invoking revisional jurisdiction, it is a pre-condition that the appellate jurisdicti....
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....oner of Income-tax had passed an order under section 264 against the assessee and holding that the provisions of section 154 were applicable and a revision was not barred by limitation" in favour of the assessee and against the Revenue." 8. In view of the above judgment of Madras High Court, this Tribunal is of the considered opinion that when the assessee invoked revisional jurisdiction under Section 264 of the Act, it cannot constitute a bar for invoking the appellate jurisdiction. Therefore, the judgment of Madras High Court is squarely applicable to the facts of the case. Hence, the appeal filed before the CIT(Appeals) is maintainable. Therefore, the CIT(Appeals)'s finding that the appeal is not maintainable cannot be upheld. 9. N....