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2016 (6) TMI 800 - AT - Income TaxLevy of penalty u/s 221(1) - default in payment of tax - Held that:- We find that the assessee filed the return of income. However, on the date of return of income filed, the admitted tax is not paid. Subsequently, within a month, assessee has paid almost all the amounts which are payable on the date of the filing of the return of income. The A.O. was of the opinion that the assessee has violated the provisions of section 221(1) of the Act and accordingly levied the penalty at 100% of tax payable. On appeal, the Ld. CIT(A) by considering the explanations given by the assessee, he has restricted the penalty to 10% of tax payable with an observation that the assessee has paid the taxes even before the issue of the notice by A.O. u/s 221(1) of the Act and complied the tax demand voluntarily. We find that the assessee has not paid taxes which are payable along with a return of income, however paid within a month even before the notice issued by the A.O. and the assessee complied the demand of tax voluntarily. Under these above facts and circumstances of the case, it is not a fit case to impose penalty u/s 221(1) of the Act. - Decided in favour of assessee
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