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TMI Blog2020 (10) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 discharge its liability. Whether provision u/s. 273B of the Act is applicable to the assessee or not? - reasonable cause as defined u/s. 273B in our opinion is not applicable to the penalty imposable u/s. 221 of the Act. The term advance tax refers to paying a part of taxes before the end of the financial year. It should be paid in the year in which the income is received. Assessee paid 11,21,000/- on two dates 13-03-2015 and 16-03-2015 i.e. after passing of penalty order on 03-03-2015 and an amount of 35,00,000/- on 16-01-2017 i.e. just before pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a total income of ₹ 1,83,55,238/- within due date but no self assessment tax amounting to ₹ 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 the Act should not be levied. The said notice was not served due to change of address of assessee. Again the AO issued another notice which was served on the assessee, in spite of receipt of such notice no response from the assessee. The AR of the assessee communicated orally to the AO that the assessee is not willing to pay self assessment tax. Having no response from the assessee in payment of self assessment tax the AO treated the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of the Act and is liable to pay advance tax. 7. Section 208 speaks that advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year is ten thousand rupees or more. In the present case, the assessee filed return of income declaring a total income of ₹ 1,83,55,238/- and also admitted that it requires to pay ₹ 66,13,420/- as tax. Admittedly, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 discharge its liability. 11. The assessee raised a ground that due to financial liquidity crisis the assessee could not pay taxes. As discussed above, the assessee was in sound financial position during the dates of installments of advance tax payments. Let us examine the provision u/s. 273B of the Act is applicable to the assessee or not. Under the provisions of section 273B no penalty be imposed in certain cases listed there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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