2016 (10) TMI 1244 - AT - Income Tax

Penalty u/s 271AAA - assessee has filed a letter dated 10. 09. 1013 requesting for time to make payment of taxes and time was granted till 30.09.2013 but the assessee did not pay taxes - assessee has not complied with the specific requirements of sub section (2) of section 271AAA about payment of taxes and interest - payment of tax and interest on raising the demand u/s 156 - Held that - The assessee made payment of tax and interest in full on getting the demand notice in that case u/s 156 and under these facts, the tribunal held that since no time limit is prescribed for payment of tax and interest, the payment of tax and interest on raising the demand u/s 156 is good compliance of this payment requirement and the A. O. cannot insist that such payment should have been made before filing of return but in the present case, payment of tax and interest has not been made till now because no such evidence of payment has been brought on record before us or before lower authorities. Hence this tribunal order in PIONEER MARBLES & INTERIORS PVT LTD 2012 (2) TMI 261 - ITAT, KOLKATA is not applicable. Moreover, since the assessee has not complied with the specific requirements of sub section (2) of section 271AAA about payment of taxes and interest and therefore, the assessee is not eligible for the benefit of this sub section (2) of section 271AAA. - Appeal of the assessee is dismissed.

Summary

Issues: Appeal against penalty u/s 271AAA for A. Y. 2011-12.

Analysis:
1. The appeal was directed against the Order of CIT (A) - 4 Bangalore for the assessment year 2011-12.
2. The assessee raised 6 grounds, focusing primarily on the penalty under section 271AAA.
3. The assessee relied on a tribunal order in the case of DCIT vs. Pioneer marbles & Interiors Ltd., emphasizing compliance with tax payment requirements.
4. The Assessing Officer noted that the assessee failed to pay taxes despite requesting and being granted an extension, leading to the imposition of penalty under section 271AAA.
5. The tribunal order cited by the assessee emphasized the importance of timely payment of tax and interest upon receiving a demand notice under section 156.
6. However, in the present case, the payment of tax and interest had not been made, rendering the tribunal order inapplicable.
7. The assessee did not fulfill the specific requirements of subsection (2) of section 271AAA regarding tax and interest payment, making them ineligible for the benefits of the said subsection.
8. Consequently, the tribunal declined to interfere with the CIT (A)'s order, leading to the dismissal of the assessee's appeal against the penalty under section 271AAA for the assessment year 2011-12.