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2014 (2) TMI 1219 - ITAT MUMBAIPenalty levied u/s 221(1) - Penalty payable when tax in default - Held that:- On examination of the entire gamut of circumstances, the fact that the assessee cleared its tax, interest and balance interest dues, leaving not even a rupee outstanding in dues, much before the AO triggered the penal provisions only goes to prove the assessee's fair intention. The fact that the assessee not being a habitual defaulter with no adverse history tainted on him goes to prove that the default was committed by it without any mala fide intention and under extreme dire circumstances.In these circumstances, we cannot subscribe to the views of the revenue authorities and sustain an action which is strictly technical. We, therefore, set aside the impugned order of the CIT(A) and direct the AO to cancel the penalty levied u/s 221(1) of the Income Tax Act. - Decided in favour of assessee
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