Dr. Shashi Kumar Gulati, Kanpur vs Assessee

This appeal is preferred by the assessee against the penalty of Rs.50000/- levied under section 221(1)/140(3) of the Income-tax Act, 1961 (hereinafter called in short "the Act").

2. The facts in brief borne out from the record are that the Assessing Officer has levied a penalty of Rs.50,000/-on account of delay in making payment of self-assessment tax. The self-assessment tax was to be paid on 30.9.2012, but the assessee has paid the same on 1.10.2012. On account of delay in deposit of self-assessment tax, the Assessing Officer has levied a penalty of Rs.50,000/- under section 221(1)/140(3) of the Act, against which an appeal was filed before the ld. CIT(A) but assessee did not find favour with him.

3. Now the assessee is in appeal before the Tribunal with the submission that the assessee is a Doctor by profession and he got his :-2-:

accounts audited in time and on account of illness, the self-assessment tax could be deposited on 1.10.2012 though it was required to be deposited by 30.9.2012. Therefore, there was a delay of one day only in deposit of self-

assessment tax on account of illness of the assessee. The delay was not intentional, therefore, the same may be condoned and the penalty may be deleted.

4. The ld. D.R., on the other hand, has simply placed reliance upon the order of the ld. CIT(A).

5. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that there was a delay of only one day in deposit of self-assessment tax which was due to assessee's illness. Reliance was also placed upon the order of the Mumbai Bench of the Tribunal in the case of M/s Nirman Construction vs. ACIT in I.T.A. No. 6191/Mum/2011. We have carefully examined the order of the Mumbai Bench of the Tribunal and we find that there is a reasonable cause for delay and it should be condoned and penalty should be deleted. Since the delay in deposit of self-assessment tax was of one day which was caused due to the illness of the assessee, we condone the delay and delete the penalty levied under section 221(1)/140(3) of the Act. Accordingly, the appeal of the assessee stands allowed.

6. In the result, appeal of the assessee is allowed.

Order was pronounced in the open court on the date mentioned on the captioned page.

Sd/- Sd/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER

DATED:17th June, 2015 JJ:1106 :-3-:

Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar