Penalty for tax default deleted as such default occurred due to genuine scarcity of funds with assessee

Section 221 of the Income-tax Act, 1961 - Collection and recovery of tax - Penalty payable when tax in default (Conditions precedent) - Assessment year 2009-10 - Assessee-company had not paid advance tax on various dates during financial year, nor self assessment tax under section 140A while filing return of income - Assessing Officer levied penalty under section 221(1) - Whether a fact that assessee's money got stuck in an attachment of a third party but assessee had arranged funds to clear its tax dues along with interest upto date of payment much before Assessing Officer triggered penal provisions, had elaborately proved bona fide intention of assessee and default as well as reasons making assessee a defaulter was a good and sufficient reason - Held, yes - Whether, therefore, no penalty could be levied under section 221(1) - Held, yes [Paras 13, 18 & 20] [In favour of assessee]

Refer:[2014] 44 taxmann.com 463 (Mumbai - Trib.)
IN THE ITAT MUMBAI BENCH 'I'
Jehangir Lentin Estates (P.) Ltd.
v.
Income Tax Officer -5(2)(2), Mumbai