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TMI Blog1987 (7) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... was not paid at the time of filing the return. The assessment was completed on 4-3-1982 and tax demand of Rs. 9,536 was raised which was paid on 5-8-1982. Since the self assessment tax was not paid the Income tax Officer invoked the provisions of section 140A (3) of the Act. He levied the penalty of Rs. 4,914. The assessee appealed to the Appellate Assistant Commissioner. The assessee urged before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this appeal. 2. The learned counsel for the assessee submitted that explanation was filed before the Income-tax Officer which was not considered by him. He produced the balance sheet and pointed out that the cash in hand was Rs. 186 and bank balance was Rs. 520. Hence due to lack of funds the self assessment tax could not be paid. Hence there was reasonable cause for not paying the self assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that cash in hand was Rs. 186 and bank balance was Rs. 520. A return was filed on 9-11-1979 around that time. Thus, in our view the plea that, due to lack of funds the self assessment tax under section 140A was not paid is a bona fide one and thus there was sufficient cause for not paying the self assessment tax under section 140A due to lack of funds. Hence levy of penalty under section 140A (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... funds the self assessment tax could not be paid and it cancelled the penalty levied under section 140A (3). The High Court upheld the findings of the Appellate Tribunal. In Addl. CIT v. Free Wheels India Ltd. (1982) 137 ITR 378 (Delhi), the Tribunal accepted the assessee's plea that due to financial difficulties the self assessment tax could not be paid. The Tribunal cancelled the penalty levied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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