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1974 (1) TMI 8 - HC - Income TaxAssessee's voluntary disclosure was accepted and demand for tax was issued. When the assessee fully pays the tax as per instalments allowed, whether interest could be levied - It is true, that the petitioner is liable to pay interest and, unless he pays the interest, he is not entitled to get the certificate as provided under sub-section (15) of section 24 of the Finance (No. 2) Act of 1965. But the point for determination is whether for non-payment of interest penalty could be imposed under sub-section (1) of section 221 of the Act. In my view as " tax " has been defined under clause (43) of section 2 of the Act, there is no scope for any argument that " interest " is an " additional tax ". Accordingly. I hold that no penalty can be imposed for default in payment of interest under sub-section (1) of section 221 of the Act. - In the result, this rule is made absolute in part. The impugned notice of penalty under section 221(1) of the Income-tax Act, 1961, dated April 2, 1971, which is annexure " F " to the petition, must be quashed by a writ of mandamus.
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