9911796707
TMI Blog2021 (2) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... dmitted by a Bench of this Court vide order dated 01.08.2012 on the following substantial question of law: "Whether the financial incapacity of an assessee to pay the tax does not warrant levy of penalty under Section 221 of the Income Tax Act?" 2. Facts leading to filing of this appeal briefly stated are that the assessee is a company. The assessee filed its return of income for the Assessment Year 2008-09 declaring an income of Rs. 4,07,660/-. The tax payable on the aforesaid income was assessed at Rs. 1,37,619/- which was duly paid by the assessee. The Assessing Officer, however, vide order dated 09.02.2009, levied the penalty of Rs. 50,00,000/- for the Assessment Year 2008-09. The assessee further pleaded that it appears that the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suffers from the vice of non-application of mind and since the specific ground which has been raised by the assessee has not been adjudicated by the Commissioner of Income Tax (Appeals) as well as the Tribunal, the matter deserves to be remitted to the authorities for decision afresh in accordance with law. It is also urged that invoking the provisions of Section 221 of the Act is without jurisdiction for non-payment of self assessment tax partly, under Section 140A(3) of the Act. 4. On the other hand, learned counsel for the revenue has invited our attention to paragraph 21(b) of the memorandum of appeal and has submitted that infact in the memorandum of appeal itself, the assessee has admitted that it had committed a default for the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice, summons or other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act." From close scrutiny of Section 292 B of the Act, it is evident that no return of income, assessment, notice, summons or other proceeding, furnished or made or issued or taken or purported to have been furnished or m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hereinafter. 6. From the order of penalty, it is evident that same refers to Assessment Year 2008-09. The aforesaid order has been affirmed by the Commissioner of Income Tax (Appeals), by which the penalty was levied by the Assessing Officer in respect of Assessment Year 2008-09. Similarly, the Tribunal vide order dated 14.03.2011, has held that the penalty has been levied in respect of Assessment Year 2008-09. From perusal of Annexure-B annexed with the memorandum of appeal, it is evident that the assessee has paid tax in respect of Assessment Year 2008-09. It is also not in dispute that admittedly the assessee has committed a default in respect of Assessment Year 2007-08 and did not pay the tax on account of financial hardship. However ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
