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आदेश/Order
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order dated 28.09.2018 of the Commissioner of Income Tax-2, Chandigarh [hereinafter referred to as ‘CIT(A)’] agitating the action of the Ld. CIT(A) in deleting the penalty u/s 221(1) of the Income Tax Act, 1961 (in short 'the Act') levied by the Assessing Officer.
ITA No. 1530/Chd/2018- M/s Venus Remedies Limited, Manimajra 2 2. The Assessing Officer levied the impugned penalty for non-
payment of self-assessment tax along with interest. However, the
assessee submitted before the Ld. CIT(A) that the assessee was in heavy
financial crunch. He demonstrated before the Ld. CIT(A) that its funds
were utilized in payment of loans and taxes. Though, the Assessing
Officer in the impugned order had observed that the assessee earned
sufficient profits in the subsequent years, however, the assessee
demonstrated before the Ld. CIT(A) that all the profits earned by the
assessee were got utilized in payment of outstanding liabilities. The
assessee despite of financial difficulties was able to run the business.
Considering the submissions of the assessee which were
corroborated with the accounts of the assessee, the Ld. CIT(A) invoking
the second proviso to section 221(1) of the Act deleted the impugned
penalty observing that the default on the part of the assessee was on
account of good and sufficient reasons.
Being aggrieved by the above order of the CIT(A), the Revenue
has come in appeal before us.
We, after considering the rival contentions of the Ld. Authorized
Representatives of both the parties and having gone through the
material available on record, find that the Ld. CIT(A) has discussed and
ITA No. 1530/Chd/2018- M/s Venus Remedies Limited, Manimajra 3 deliberated upon the issue, and we do not find any infirmity in the order of the CIT(A), the same is therefore, upheld.
In the result, the appeal of the Revenue stands dismissed.
Order dictated and pronounced in the Open Court immediately on completion of hearing.
Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member
Dated : 26.11.2019 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar