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2014 (8) TMI 483 - AT - Income TaxPenalty u/s 140A(3) – Tax liability not paid but admitted - tax was paid while filing revised return u/s 139(5) - Held that:- When the return is filed u/s 139 of the Act and if any assessee 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 - 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 prescribed period u/s 139(5) of the Act and at the time of filing the return u/s 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 - the assessee has filed the return u/s 139 of the Act and at the time of filing of the return, the admitted tax liability was also paid - section 140A(3) can only be invoked where the assessee 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 u/s 139(5) of the Act, the provisions of sub-section (3) of section 140A of the Act cannot be invoked for imposing penalty u/s 140A of the Act for non-payment of tax or interest on the income declared in the return - the penalty u/s 140A(3) of the Act cannot be levied – Decided against Revenue.
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