Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 735 - AT - Income TaxPenalty u/s 221(1) of the Act – non-payment of self assessment tax while filing return - Held that:- The decision in Hindustan Steel Limited Versus State Of Orissa[1969 (8) TMI 31 - SUPREME Court] Followed - levy of penalty is not justified - Provisions of section 221(1) are not absolute as the words used in the provisions is not "shall" but "may"- This give a discretion to the authority vested with the power of levy of penalty not to levy penalty also - The assessee was saddled with a tax liability of more than Rs.55.00 lacs in respect of earlier years in view of retrospective amendment into the statute - The assessee has been paying said liability in installments and in the process, it is possible that assessee may have forgotten to make the payment of self-assessment tax which was paid immediately when the fact regarding non-payment came to the notice of the assessee – thus, it cannot be said that the assessee's act was deliberate in defiance of law or assessee is guilty of a conduct which is contumacious or dishonest - assessee is not liable for penalty to be levied under section 221(1) of the Act – Decided in favour of Assessee.
|