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TMI Blog2010 (3) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... oans for the construction of the building, it could not be said that the assessee had no funds to pay the self assessment tax as a karta of the Hindu Undivided family. The imposition of penalty u/s 271(1)(a) of the Act was just and proper. - 2888 of 2005 - - - Dated:- 2-3-2010 - MANJUNATH K. L., NAGARATHNA B. V. MRS. JJ. K.V. Arvind for M.V. Seshachala for the appellants. S.P. Bhat for the respondent. JUDGMENT The judgment of the court was delivered by Mrs. B. V. Nagarathna J.- The Revenue has preferred this appeal challenging the order dated March 14, 2005 passed in I. T. A. No. 343/ Bang/2003 by the Appellate Tribunal raising the following substantial questions of law : "(1) Whether the Tribunal was correct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty proceedings be dropped. The Assessing Officer, however, did not accept the explanation offered by the assessee and proceeded to levy penalty by his order dated August 22, 1997, which order was challenged by the assessee before the Commissioner of Income-tax (Appeals) and being unsuccessful, the assessee challenged the order of the appellate authority dated December 26, 2002, before the Appellate Tribunal, Bangalore Bench. The Tribunal while accepting the explanation offered by the assessee, set aside the order of penalty dated August 22, 1997. Being aggrieved by the said order, the Revenue has preferred this appeal. 3. We have heard learned counsel for the Department and learned counsel for the respondent-assessee. 4. It is poin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood of the Government. Due payment of taxes should be considered as a moral obligation of every citizen as safeguarding public revenues and public property is a fundamental duty which should be cultivated by every citizen. Though it is open to every per-son to arrange his affairs so as to reduce the brunt of taxation to a minimum and such a process would not amount to tax evasion, colourable devices for the purpose of tax planning or to avoid payment of taxes has to be curbed. Similarly the non-payment of taxes has to be viewed seriously by courts as well as by the authorities concerned. 7. In the instant case, the explanation offered by the assessee was that there were no funds to pay the self-assessment tax. But in the face of the afore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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