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2021 (2) TMI 586 - HC - Income TaxLevy of penalty u/s 221 - Error / Mentioning of wrong AY in the penalty order - Financial incapacity of an assessee to pay the tax - Year of assessment - HELD THAT:- From perusal of Annexure-B annexed with the memorandum of appeal, it is evident that the assessee has paid tax in respect of Assessment Year 2008-09. It is also not in dispute that admittedly the assessee has committed a default in respect of Assessment Year 2007-08 and did not pay the tax on account of financial hardship. However, the authorities under the Act have taken into account the fact in respect of the Assessment Year 2007-08 and have held the assessee to be in default in respect of Assessment Year 2008-09 and have created the penalty under Section 221 of the Act in respect of Assessment Year 2008-09. The aforesaid mistake, if any, is not same under Section 292B of the Act under which only clerical error or accidental omissions can be protected. Therefore, the decisions on which reliance has been placed by the learned counsel for the revenue, has no application to the factual matrix of the case. We have no option but to quash the order dated 14.03.2011 passed by the Tribunal and remit the matter to the Tribunal. Needless to state that it will be open for the parties to urge their contentions before the Tribunal and all questions of law are kept open to be raised before the Tribunal
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