Porwal Creative Vision P. Ltd, Mumbai vs Assessee
3. The assessee disputed the decision of AO and submitted before the
CIT(A) that the assessee had incurred certain expenses such as professional
fees, rent, contract labour and commission which attracted TDS. The assessee
was incurring losses and there was financial crisis and therefore due to non-
availability of funds there were delays in making the payments and filing the
returns. It was accordingly submitted that there was reasonable cause and
penalty should be deleted. Reliance was placed on the judgment of Hon'ble
High Court of Allahabad in the case of CIT v. Shriram Memorial Education
Society (287 ITR 155) and the decision of Mumbai Bench of Tribunal in the case
of Crest Communication Ltd. (11 SOT 47). The CIT(A) was, however, not
satisfied. It was observed by him that the delay was admitted. The assessee
had not only failed to pay the taxes but also delayed the filing of the returns.
Therefore, the explanation of the assessee based on financial crisis could not be
accepted. The CIT(A) accordingly confirmed the penalty levied for both the
years, aggrieved by which the assessee is in appeal before the Tribunal for both
the years.