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TMI Blog2014 (5) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has satisfied that there was a good and sufficient reason for the default – thus, no penalty should be levied especially, when the assessee has later on deposited the entire amount – thus, the order of the CIT(A) upheld – Decided against Revenue. - ITA No. 297/Ahd/2011 - - - Dated:- 17-4-2014 - Shri Mukul Kr. Shrawat And Shri N. S. Saini,JJ. For the Petitioner : Shri O. P. Batheja, Sr. D. R. For the Respondent : Shri T. P. Hemani, AR ORDER Per Shri Mukul Kumar Shrawat, Judicial Member. This is an appeal filed by the Revenue arising from the order of learned CIT(A)-XI, Ahmedabad, dated 24.11.2010. The only ground raised by the Revenue is as under: The Ld. Commissioner of Income Tax (A) has err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, it is also seen that the appellant returned huge loss of Rs.1,39,09,808/- for the immediately succeeding A.Y. 2007-08 (i.e. the period in which tax u/s. 140A was to be paid). Appellant complied with the installments given. In the facts of the case, I am of the view that this is not a fit case for imposition of penalty. Reliance is placed in this regard on the case of CIT vs. Hydroflex Equipments Ltd. (150 Taxman 264)(Bom), wherein it was held that the very act of CCIT extending time for payment of tax showed that there was a reasonable cause for non-payment of tax in time, and therefore penalty proceedings initiated u/s.221 were to be dismissed. The penalty levied is cancelled. This ground of appeal is allowed. 4. We have heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is in default or is deemed to be in default in making a payment of tax, he shall, in addition to the amount of the arrears and the amount of interest payable under sub-section (2) of section 220, be liable, by way of penalty to pay such amount as the [Assessing] Officer may direct an in the case of a continuing default, such further amount or amounts as the [Assessing] officer may, from time to time, direct, so however, that the total amount of penalty does not exceed the amount of tax in arrears: Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard: Provided further that where the assessee proves to the satisfaction of the [Assessing] Officer that the default was fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Safari Mercantile (P) Ltd. Vs. ACIT, (2008) 21 SOT 531 2. CIT Vs Pure Drinks (New Delhi) Ltd., (2013) 37 taxmann.com 30 (P H.) 3. V. Govinda Chetty Vs. CIT, (1998) 231 ITR 615 (Madras) 4. Diamondstar Exports Ltd. Vs. ITO, (2013) 40 taxmann. com 460 5. M/s. Lok Housing and Construction Ltd. Vs. Additional CIT, ITA No.5224 5225/Mum/2009. 5. Considering the totality of the facts and circumstances of the case, we are of the view that the assessee has satisfied us that there was a good and sufficient reason for the said default; hence, no penalty should be levied in such circumstances, especially, when the assessee has later on deposited the entire amount, as detailed above. Resultantly, we hereby affirm the findings of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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