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2014 (5) TMI 1086 - AT - Income TaxPenalty under section 221(1) - non deposit tax under section 140A - Held that:- As per Explanation 221(1), the assessee shall not cease to be liable to any penalty merely by reason of the fact that before the levy of penalty he has paid to the tax. In fact, in the present case, the penalty u/s 221(1) of the Act was levied on 30.12.2009 on which date, the assessee was enjoying the money by investing the same in his sister concern in which he is stated to have incurred losses and by placing balance sheet of such company cannot help the assessee to prove good and sufficient cause and such action of investing money in the said concern M/s. Nijjar Agro Foods appears to be quite intentional for avoiding preferred liability of Income-tax. Therefore, there cannot be any good and sufficient cause established before any of the authorities below or even before us for not levying penalty. No infirmity in the order of the ld. CIT(A) who has actually confirmed the levy of penalty under section 221(1)of the Act - Decided against assessee Rectification of mistake - reversal of returned income claiming exempt LTC gain which has been erroneously shown - Held that:- We concur with the views of the ld. CIT(A) that the AO is quite justified in rejecting the assessee’s rectification application because the mistake sought to be amended is not a prima facie mistake. Secondly, the assessee is submitting corroborating evidence with the rectification application which requires investigations and verification and as such the same is outside the purview of provisions of section 154 of the Act. However, the correct course would have been by seeking remedy by moving revision application u/s 264 before the CIT_II, Amritsar soliciting for revision of order passed u/s 143(1) of the Act or by filing revised return.- Decided against assessee
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