2020 (10) TMI 410

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....herefore we proceed to dispose of the case by hearing the ld. DR and perusing the material available on record. 3. The assessee raised ground Nos. 1 to 4 amongst which the only issue emanates challenging the action of CIT(A) in confirming the penalty imposed u/s. 221 of the Act to an extent of Rs. 16,53,355/- in the facts and circumstances of the case. 4. The ld. DR, Shri Alok Malviya submits that the assessee filed return of income declaring a total income of Rs. 1,83,55,238/- within due date but no self assessment tax amounting to Rs. 66,13,420/- paid. The assessee was requested to pay tax dues but no response from the assessee. The AO issued a letter requesting the assessee to show cause as to why penalty u/s. 221 r.w.s. 140A(3) of....

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.... 6. Heard ld. DR and perused the material available on record. Section 207 explains that tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 of the Act. The payment of advance tax refers to total income chargeable to tax for assessment year on immediately following that financial year is being referred as current income. This provision shall not apply to an individual resident in India who does not have any income chargeable under the head profits and gains of business or profession and is of the age of 60 years or more at any time during the previous year. The record shows that the assessee is Private Limited Company and therefore is very much under the ambit of section 207 o....

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.... restricted the same to an extent of Rs. 16,53,355/- being 1/4th of tax due. 10. The CIT(A) examined the case in detail. We note that the assessee stated that the financial crunch is the main reason for non-payment of tax liability. The CIT(A) in its order at page No. 6 examined the financial position of assessee as on the due dates of installments of payments of advance tax and also on due date for filing of return of income, wherein we note that the assessee had sufficient balance amount in its accounts to discharge the tax liability as on the due dates of installments in terms of section 211 of the Act. Therefore, we completely agree with the reasons recorded by the CIT(A) in its order that the assessee had sufficient funds to dischar....