Case Law Details
Brief about the case
The Assessee filed his return on 30.03.2008 declaring total income of Rs.62799405/-comprising of Short Term Capital Gains of Rs.4,73,30,889/- and Long Term Capital Gains of Rs. 1,53,11,448/- along with salary income. The tax payable on the returned income was Rs.5317680/-. However, the assesee only paid Rs.1100887/- and the balance of Rs.4216773/- remained unpaid. The AO after processing the return raised a demand of Rs.6207590/- along-with interest. The case was further selected for scrutiny and the assessment was completed u/s 143(3) on 4/12/2008 by treating the share transactions as assessable under the head ‘business’. As a result of this, demand of Rs.31930835/- was raised. However, A.O after noticing the contravention of sec. 140A, treated the assessee in default u/s 140A(3) and issued a show cause notice. Since the assessee did not reply to the show cause notice the Assessing Officer again issued similar notices asking the assessee to explain. In absence of any reply from the assessee despite opportunities given, the Assessing Officer levied penalty of Rs.4216773/- u/s 140A(3) r.w.s. 221 of the I.T. Act.
Against the order, assessee filed the appeal before CIT(A) and craves for waiver of said penalty on the ground of good and sufficient reasons. Considering the fact he also requested that the delay for filing appeal may also be condoned by CIT(A).
Based on the ground sighted by the assessee, Ld. CIT(A) cancelled the penalty so levied u/s 140A(3) of the Act.
Contention of Revenue
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