Asstt. Commissioner of Income Tax-6, Kanpur V. M/s. Shri Shakti Credits Ltd., Kanpur

ITA 531/LKW/2013

• Counselvise Citation: 53123714 RSA 2013
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 22-07-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 12-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P K KAPOOR
• Keywords: Revised return
• Section: 153A; 234B; 139(5); 148; 144; 90; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 531/LKW/2013 ASSESSMENT YEAR: 2008 - 09 ACIT - 6 KANPUR V. M/S SHRI SHAKTI CREDITS LTD. 11 , MOTI BHAWAN COLLECTOR GANJ, KANPUR PAN: AACCS0092B (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. AMIT NIGAM, D.R. RESPONDENT BY: SHRI. P. K. KAPOOR, C.A. DATE OF HEARING: 22 0 7 2014 DATE OF PRONOUNCEMENT: 08 0 8 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON VARIOUS GROUNDS , WHICH ARE AS UNDER: - 1 . THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FAC TS IN CANCELLING PENALTY OF RS. 1,24,35,720/ - LEVIED BY AO BY INVOKING PROVISIONS OF SECTION 140A(3) WITHOUT APPRECIATING THE FACT THAT THESE PROVISIONS HAVE TO BE READ WITH PROVISIONS O F S. 140A(1) AND IF THIS IS DONE THE ACTION OF THE AO IS THE PROPER COURSE. 2 . THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN FAILING TO A PPRECIATE THAT THE ASSESSEE HAD FAILED TO PAY ADVANCE TAX AND THEREBY INFRINGED PROVISIONS OF SECTION 14 0 A(1) WHICH CLEARLY MAKE THE ASSESSEE LIABLE FOR DEFAULT OR DELAY IN PAYMENT; OF ADVANCE TAX. 3 . THAT THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT EVEN FIL ING OF PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : REVISED RETURN DOES NOT IN ANY MANNER CONDONE THE DELAY OR DEFAULT IN PAYMENT OF ADVANCE TAX AND SECTION 140A(1) READ WITH SECTION 140A(3) WOULD CONTINUE TO APPLY TO SUCH DEFAULT OR DELAY. 4 . THE LD. CIT(A) HAS ERRED IN LAW AND ON \ FACTS IN DELETING TH E PENALTY OF RS. 1,24,35,720/ - U/S 140A(3)/221 OF THE I . T ACT, 1961 WITHOUT APPRECIATING THE FACTS THAT AS PER EXPLANATION TO SECTION 221 OF THE IT ACT, THE ASSESSEE SHALL NOT CEASE TO BE LIABLE TO ANY PENALTY MERELY BY THE REASON THAT BEFORE LEVY OF SUCH P ENALTY SUCH TAX WAS PAID. 5 . THE LD . CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF R S. 1,24,35,720/ - U/S 140A(3)/221 OF THE IT ACT, 1961 WITHOUT APPRECIATING THAT THE FACTS OF THE CASE ARE DIFFERENT FROM THE CASES ON WHICH THE ID. CIT(A) HAS RELIED. 6 . THE LD. CI T(A) HAS ERRED IN LAW AND ON FACTS WITHOUT APPRECIATING THE FACTS THAT THE REVISED RETURN CANNOT BE USED AS A DEVICE TO CIRCUMVENT PENAL PROVISIONS OF THE LA W AND FILING OF SUCH REVISED RETURN DOES NOT IN ANY MANNER CURE THE ASSE SS E 'S DEF AULT? 7 . THE ORDER OF THE CIT(A), KANPUR BEING ERRONEOUS, UNJUST AND BAD IN LAW BE VACATED AND THE ORDER OF THE AO BE RESTORED. 2 . THOUGH VARIOUS GROUNDS ARE RAISED, BUT THEY ALL RELATE TO THE PENALTY LEVIED UNDER SECTION 140A(3) OF THE INCOME - TAX ACT, 1961 (HE REINAFTER CALLED IN SHORT THE ACT'). 3 . THE FACTS IN BRIEF BORNE OUT FROM THE ORDERS OF THE LOWER AUTHORITIES ARE THAT THE ASSESSEE - COMPANY HAS FILED RETURN OF INCOME ON 30.9.2008 WITHIN THE DUE DATE AS STIPULATED UNDER SECTION 139(1) OF THE ACT. THE ASSESS EE - COMPANY ADMITTEDLY HAD NOT PAID TAX LIABILITY AS PER RETURN OF INCOME FILED. AT THAT TIME, THE ASSESSING OFFICER DID NOT INITIATE PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : PROCEEDINGS UNDER SECTION 140A(3) OF THE ACT AGAINST NON - PAYMENT OF ADMITTED TAX LIABILITY. THE ASSESSEE - COMPANY THEREAFT ER FILED A REVISED RETURN OF INCOME UNDER SECTION 139(5) OF THE ACT ON 26.9.2009. AT THE TIME OF FILING THE REVISED RETURN, THE ASSESSEE - COMPANY HAS PAID ALL THE TAXES AS ADMITTED BY IT. THE ASSESSMENT WAS FRAMED ON THE BASIS OF THE REVISED RETURN. THE ASSESSING OFFICER INITIATED PROCEEDINGS UNDER SECTION 140A(3) OF THE ACT FOR NOT HAVING PAID THE ADMITT E D TAX LIABILITY AS PER ORIGINAL RETURN OF INCOME AND LEVIED PENALTY OF RS.1,24,35,720/ - . 4 . THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A) WITH THE SUBMISSION THAT THE RETURN WAS FILED UNDER SECTION 139 OF THE ACT AND AT THE TIME OF FILING THE REVISED RETURN, THE ADMITTED TAX LIABILITY WAS PAID. THEREFORE, PROVISIONS OF SECTION 140A(3) OF THE ACT CANNOT BE INVOKED. FINDING FORCE IN THE CONTENTION O F THE ASSESSEE, THE LD. CIT(A) HAS DELETED THE PENALTY HAVING OBSERVED THAT ONCE VALID REVISED RETURN HAS BEEN FILED, IT EFFACES AND SUBSTITUTES THE ORIGINAL RETURN OF INCOME AND ADMITTEDLY THERE WAS NO UNPAID TAX LIABILITY AS PER THE REVISED RETURN OF INC OME. THEREFORE, THERE WAS NO OCCASION TO INITIATE PROCEEDINGS UNDER SECTION 140A(3) OF THE ACT. ACCORDINGLY, THE PENALTY ORDER WAS CANCELLED. THE RELEVANT OBSERVATIONS OF THE LD. CIT(A) ARE EXTRACTED HEREUNDER FOR THE SAKE OF REFERENCE: - 3.3.1 THE ADM ITTED FACTS IN THE INSTANT CASE ARE: I ) THAT THE APPELLANT COMPANY HAD FILED A RETURN ON INCOME ON 30.09.2008, WHICH WAS WITHIN THE 'DUE - DATE' AS STIPULATED U/S 139(1) OF THE ACT. II ) THAT THE APPELLANT COMPANY HAD NOT PAID THE ADMITTED TAX LIABILITY PER THE R ETURN OF INCOME FILED (SUPRA). III ) THAT THE A.O, DID NOT INITIATE PROCEEDINGS U/S 140A(3) AGAINST NON - PAYMENT OF ADMITTED TAX LIABILITY. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 4 - : IV ) THAT THE ASSESSEE ACCOMPANY FILED A REVISED RETURN OF INCOME U/S 139(5) ON 26.09.2009. V ) THAT THE ASSESSEE COMPANY HAD PAID ALL TAXES AS ADMITTED BY IT IN ITS REVISED RETURN OF INCOME BEFORE FILING THE REVISED RETURN OF INCOME. VI ) THAT THE A.O. HAS TAKEN COGNIZANCE OF THE SAID REVISED RETURN OF INCOME SINCE THE ASSTT. HAS BEEN MADE ON THE INCOME AS RETURNED IN THAT REVISED RETURN. VII ) THAT THERE WAS NO TAX LIABILITY DUE ON THE ADMITTED INCOME WHEN THE ASSESSEE COMPANY FILED ITS REVISED RETURN OF INCOME ON 26.09.2009. VIII ) THAT THE A.O. INITIATED PROCEEDINGS U/S 140A(3) FOR NOT HAVING PAID THE ADMITTED TAX LIABILITY AS PER THE ORIGINAL RETUR N OF INCOME. 3.3.2 IN THIS CONNECTION, APART FROM OTHER ARGUMENTS, THE APPELLANT COMPANY HAS BROUGHT TO MY NOTICE THE DECISIONS OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S MIRANJAN LAL RAM CHANDRA JAND ALSO IN THE CASE OF AMJAD ALI NAZVI A LI (SUPRA) FOR THE PROPOSITION THAT ONCE A VALID REVISED RETURN HAS BEEN FILED U/S 139(5) OF THE ACT, IT SUBSTITUTES THE ORIGINAL RETURN OF INCOME. IN ITS DECISION, IN THE CASE OF NIRANJAN LAL RAM CHANDRA (SUPRA), THE HON'BLE ALLAHABAD HIGH COURT HAD OBSE RVED: 'A RETURN FILED UNDER S. 139(5) OF THE I. T. ACT, 1961, BEING A VOLUNTARY RETURN, IS OF THE NATURE OF A RETURN UNDER S. 139(1), OR AT BEST A RETURN UNDER BOTH THE PROVISIONS. FOR, IF THE ORIGINAL RETURN FILED UNDER S. 139(1) IS TAKEN TO BE WITHDRAWN AND THE REVISED .RETURN SUBSTITUTES ITSELF IN ITS PLACE, IT BECOMES A RETURN UNDER S. 139(1). THEREFORE, A SECOND REVISED RETURN CAN BE FILED UNDER S. 139(5) CORRECTING OMISSIONS OR WRONG STATEMENTS MADE IN THE FIRST REVISED RETURN FOR, THE FJRST REVISED PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 5 - : R ETURN FILED UNDER S. 139(5) WOULD, IN LAW, BE A RETURN UNDER S. 139(1) ALSO.' - 3.3.3 THE LD. A.R. HAS ALSO BROUGHT TO MY NOTICE THE DECISION OF THE HON'BLE MADRAS HIGH COURT IN THE CASE OF M/S. PYRAMID SAIMIRA THEATRE LIMITED VS. CIT - IV, CHENNAI WHERE THE ISSUE IN QUESTION WAS IDENTICAL FILING OF REVISED RETURN AND THE PROCEEDINGS U/S 140A(3). THE HON'BLE HIGH COURT HAS RULED THAT AFTER THE REVISED RETURN WAS FILED, THE ADMITTED TAX LIABILITY WAS DIFFERENT FROM WHAT IT WAS UNDER THE ORIGINAL RETURN. 3.3.4 IN VIEW OF THE DISCUSSION ABOVE AND THE CITED CASE LAWS, I AM OF THE CONSIDERED VIEW TH AT ONCE A VALID REVISED RETURN HAD BEEN FILED, IT EFFACES AND SUBSTITUTES THE ORIGINAL RETURN OF INCOME. IN THE INSTANT CASE, THERE WAS NO UNPAID ADMITTED TAX LIABILI TY AS PER THE REVISED RETURN OF INCOME, THUS, THERE COULD BE NO OCCASION FOR THE A.O TO INITIATE PROCEEDINGS U/S 140A(3) OF THE ACT. IN THIS VIEW OF THE MATTER, I HOLD THAT THE LEVY OF PENALTY PROCEEDINGS U/S 140 A(3) WAS WITHOUT ANY LEGAL BASIS AND, T HEREFORE, THE SAME IS CANCELLED. 5 . AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AND HAS PLACED RELIANCE UPON THE ORDER OF THE ASSESSING OFFICER. 6 . THE LD. COUNSEL FOR THE ASSESSEE, BESIDES PLACING RELIANCE UPON THE ORDER OF THE LD. CIT(A), HAS INV ITED OUR ATTENTION TO THE PROVISIONS OF SECTION 140A(3) OF THE ACT WITH THE SUBMISSION THAT SECTION 140A(3) OF THE ACT CAN ONLY BE INVOKED WHERE THE ASSESSEE FAILS TO PAY THE WHOLE OR ANY PART OF SUCH TAX OR INTEREST OR BOTH IN ACCORDANCE WITH THE PROVISIO NS OF SUB - SECTION (1) OF SECTION 140A OF THE ACT, BUT IN THE INSTANT CASE RETURN WAS FILED AS PER SUB - SECTION (1) OF SECTION 140A OF THE ACT AND AT THE TIME OF FILING OF THE RETURN OF INCOME , THERE WAS NO TAX LIABILITY, AS THE ASSESSEE HAS PAID THE ADMITTE D TAX. THEREFORE, PENALTY UNDER SECTION 140A(3) OF THE ACT CANNOT BE LEVIED. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 6 - : 7 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES, WE FIND THAT THE ORIGINAL RETURN WAS FILED IN TIME I.E. BEFORE THE DUE DATE OF FILING OF RETURN UNDER SECTION 139(1 ) OF THE ACT. UNDISPUTEDLY, AT THE TIME OF FILING OF THE ORIGINAL RETURN, THE ADMITTED TAX LIABILITY WAS NOT PAID. THE ORIGINAL RETURN WAS REVISED BY FILING A REVISED RETURN UNDER SECTION 139(5) OF THE ACT AND THE SAME WAS ACCEPTED BY THE ASSESSING OFFIC ER FOR COMPLETING THE ASSESSMENT. 8 . SINCE THE CONTROVERSY REVOLVES AROUND THE APPLICABILITY OF PROVISIONS OF SECTION 140A(3) OF THE ACT FOR IMPOSING PENALTY FOR NON - PAYMENT OF ADMITTED TAX LIABILITY WHILE FILING THE ORIGINAL RETURN OF INCOME, WE FEEL IT PR OPER TO EXTRACT THE RELEVANT PORTION OF SECTION 140A OF THE ACT AS UNDER: - 1 40A. SELF - ASSESSMENT. -- (1) WHERE ANY TAX IS PAYABLE ON THE BASIS OF ANY RETURN REQUIRED TO BE FURNISHED UNDER 1SECTION 139 OR SECTION 142 OR SECTION 148 OR SECTION 153A OR, AS THE CASE MAY BE, SECTION 158BC, AFTER TAKING INTO ACCOUNT, - I) THE AMOUNT OF TAX, IF ANY, ALREADY PAID UNDER ANY PROVISION OF THIS ACT ; (II) ANY TAX DEDUCTED OR COLLECTED AT SOURCE ; (III) ANY RELIEF OF TAX OR DEDUCTION OF TAX CLAIMED UNDER SECTION 90 OR SEC TION 91 ON ACCOUNT OF TAX PAID IN A COUNTRY OUTSIDE INDIA ; (IV) ANY RELIEF OF TAX CLAIMED UNDER SECTION 90A ON ACCOUNT OF TAX PAID IN ANY SPECIFIED TERRITORY OUTSIDE INDIA REFERRED TO IN THAT SECTION ; AND (V) ANY TAX CREDIT CLAIMED TO BE SET OFF IN ACCOR DANCE WITH THE PROVISIONS OF SECTION 115JAA 6 OR SECTION 115JD, THE ASSESSEE SHALL BE LIABLE TO PAY SUCH TAX, TOGETHER WITH INTEREST PAYABLE UNDER ANY PROVISION OF THIS ACT FOR ANY DELAY IN FURNISHING THE RETURN OR ANY DEFAULT OR DELAY IN PAYMENT OF ADVANC E TAX, BEFORE FURNISHING THE RETURN AND THE RETURN SHALL BE ACCOMPANIED BY PROOF OF PAYMENT OF SUCH TAX AND INTEREST. EXPLANATION. -- WHERE THE AMOUNT PAID BY THE ASSESSEE UNDER THIS SUB - SECTION FALLS SHORT OF THE AGGREGATE OF THE TAX AND INTEREST AS AFORES AID, THE AMOUNT SO PAID SHALL FIRST BE ADJUSTED TOWARDS THE PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 7 - : INTEREST PAYABLE AS AFORESAID AND THE BALANCE, IF ANY, SHALL BE ADJUSTED TOWARDS THE TAX PAYABLE. 3(1A) FOR THE PURPOSES OF SUB - SECTION (1), INTEREST PAYABLE, -- (I) UNDER SECTION 234A SHALL BE COM PUTED ON THE AMOUNT OF THE TAX ON THE TOTAL INCOME AS DECLARED IN THE RETURN AS REDUCED BY THE AMOUNT OF, (A) ADVANCE TAX, IF ANY, PAID; (B) ANY TAX DEDUCTED OR COLLECTED AT SOURCE; (C) ANY RELIEF OF TAX OR DEDUCTION OF TAX CLAIMED UNDER SECTION 90 OR S ECTION 91 ON ACCOUNT OF TAX PAID IN A COUNTRY OUTSIDE INDIA; (D) ANY RELIEF OF TAX CLAIMED UNDER SECTION 90A ON ACCOUNT OF TAX PAID IN ANY SPECIFIED TERRITORY OUTSIDE INDIA REFERRED TO IN THAT SECTION; AND (E) ANY TAX CREDIT CLAIMED TO BE SET OFF IN ACCORD ANCE WITH THE PROVISIONS OF SECTION 115JAA 6OR SECTION 115JD; (II) UNDER SECTION 115WK SHALL BE COMPUTED ON THE AMOUNT OF TAX ON THE VALUE OF THE FRINGE BENEFITS AS DECLARED IN THE RETURN AS REDUCED BY THE ADVANCE TAX, PAID, IF ANY. 3(1B) FOR THE PURPOSES OF SUB - SECTION (1), INTEREST PAYABLE UNDER SECTION 234B SHALL BE COMPUTED ON AN AMOUNT EQUAL TO THE ASSESSED TAX OR, AS THE CASE MAY BE, ON THE AMOUNT BY WHICH THE ADVANCE TAX PAID FALLS SHORT OF THE ASSESSED TAX. 5EXPLANATION. - FOR THE PURPOSES OF THIS SUB - SECTION, 'ASSESSED TAX' MEANS THE TAX ON THE TOTAL INCOME AS DECLARED IN THE RETURN AS REDUCED BY THE AMOUNT OF, -- (I) TAX DEDUCTED OR COLLECTED AT SOURCE, IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER XVII, ON ANY INCOME WHICH IS SUBJECT TO SUCH DEDUCTION OR COLLECTION AND WHICH IS TAKEN INTO ACCOUNT IN COMPUTING SUCH TOTAL INCOME ; (II) ANY RELIEF OF TAX OR DEDUCTION OF TAX CLAIMED UNDER SECTION 90 OR SECTION 91 ON ACCOUNT OF TAX PAID IN A COUNTRY OUTSIDE INDIA ; (III) ANY RELIEF OF TAX CLAIMED UNDER SECT ION 90A ON ACCOUNT OF TAX PAID IN ANY SPECIFIED TERRITORY OUTSIDE INDIA REFERRED TO IN THAT SECTION ; AND (IV) ANY TAX CREDIT CLAIMED TO BE SET OFF IN ACCORDANCE WITH THE PROVISIONS OF SECTION 115JAA6OR SECTION 115JD. (2) AFTER A REGULAR ASSESSMENT UNDER SECTION 143 OR SECTION 144 2OR 4AN ASSESSMENT UNDER SECTION 153A OR SECTION 158BC HAS BEEN PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 8 - : MADE, ANY AMOUNT PAID UNDER SUB - SECTION (1) SHALL BE DEEMED TO HAVE BEEN PAID TOWARDS SUCH REGULAR ASSESSMENT 2OR ASSESSMENT AS THE CASE MAY BE. ( 3) IF ANY ASSESSEE FAILS TO PAY THE WHOLE OR ANY PART OF SUCH TAX OR INTEREST OR BOTH IN ACCORDANCE WITH THE PROVISIONS OF SUB - SECTION (1), HE SHALL, WITHOUT PREJUDICE TO ANY OTHER CONSEQUENCES WHICH HE MAY INCUR, BE DEEMED TO BE AN ASSESSEE IN DEFAULT IN RESPECT OF THE TAX OR INTEREST OR BOTH REMAINING UNPAID, AND ALL THE PROVISIONS OF THIS ACT SHALL APPLY ACCORDINGLY. 9 . FROM A BARE READING OF THE AFORESAID PROVISIONS OF SECTION 140A OF THE ACT, WE FIND THAT WHEN THE RETURN IS FILED UNDER SECTION 139 OF THE ACT AND IF ANY AS SESSEE FAILS TO PAY THE WHOLE OR ANY PART OF SUCH TAX OR INTEREST OR BOTH, HE /SHE SHALL BE DEEMED TO BE IN DEFAULT IN RESPECT OF THE TAX OR INTEREST OR BOTH REMAINING UNPAID AND WILL SUFFER PENALTY AS PER LAW. UNDER SUB - SECTION (1) OF SECTION 140A OF THE ACT , THE FILING OF RETURN IS TO BE DONE UNDER SECTION 139 OF THE ACT. IT HAS NOT BEEN IDENTIFIED WHETHER THE RETURN IS TO BE FILED UNDER SECTION 139(1) OR 139(5) OF THE ACT. ONCE THE RETURN IS FILED UNDER SECTION 139 OF THE ACT AND ADMITTED TAX IS NOT PA ID, ASSESSEE WOULD SUFFER PENALTY UNDER SECTION 140A(3) OF THE ACT. 10 . TURNING TO THE FACTS OF THE CASE, WE FIND THAT THOUGH THE ASSESSEE HAS NOT PAID ADMITTED TAX AT THE TIME OF FILING OF THE ORIGINAL RETURN, BUT THIS RETURN WAS DULY REVISED WITHIN THE PRESC RIBED PERIOD UNDER SECTION 139(5) OF THE ACT AND AT THE TIME OF FILING THE RETURN UNDER SECTION 139(5) OF THE ACT THE ADMITTED TAX WAS PAID. THE REVISED RETURN ALSO SUBSTITUTES THE ORIGINAL RETURN, AS THE ASSESSMENT WAS FRAMED ON THE BASIS OF THE REVISED RETURN. THER E FORE, THE ASSESSEE HAS FILED THE RETURN UNDER SECTION 139 OF THE ACT AND AT THE TIME OF FILING OF THE RETURN, THE ADMITTED TAX LIABILITY WAS ALSO PAID. PROVISIONS OF SUB - SECTION (3) OF SECTION 140A OF THE ACT CAN ONLY BE INVOKED WHERE THE AS SESSEE HAS NOT PAID ADMITTED TAX LIABILITY WHILE FILING THE RETURN UNDER SECTION 139 OF THE ACT. SINCE THE ADMITTED TAX LIABILITY HAS BEEN PAID AT THE TIME OF FILING THE RETURN UNDER SECTION 139(5) OF THE ACT, THE PROVISIONS OF SUB - SECTION (3) OF SECTION 140A OF THE ACT PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 9 - : CANNOT BE INVOKED FOR IMPOSING PENALTY UNDER SECTION 140A OF THE ACT FOR NON - PAYMENT OF TAX OR INTEREST ON THE INCOME DECLARED IN THE RETURN. THEREFORE , WE ARE OF THE CONSIDERED VIEW THAT IN SUCH CIRCUMSTANCES, THE PENALTY UNDER SECTION 14 0A(3) OF THE ACT CANNOT BE LEVIED . WE HAVE ALSO CAREFULLY PERUSED THE ORDER OF THE LD. CIT(A) AND WE FIND NO INFIRMITY THEREIN. ACCORDINGLY WE CONFIRM THE SAME. 11 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8.8.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 8 TH AUGUST , 2014 JJ: 3007 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )