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2017 (7) TMI 108 - HC - Income TaxAmount of tax in arrears u/s 221 - addition to the tax inclusion - whether interest component has to be excluded while levying penalty under Section 221(1)? - Held that:- On reading the provisions of Section 221 conjointly with the definition of “tax” as detailed under Section 2(43), the irresistible conclusion that can be drawn is that the phraseology “tax in arrears” as envisaged in Sec.221 of the Act would not take within its realm the interest component. It would be abundantly clear that the Assessing Officer can impose penalty for default in making the payment of tax, but the same shall not exceed the amount of tax in arrears. Tax in arrears would not include the interest payable under Section 220(2) of the Act. In the result, the substantial question of law are answered against the Appellant. The Appeal stands dismissed.
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