9911796707
TMI Blog1994 (3) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 1976-77. During the relevant previous year, the assessee had to pay a sum of Rs. 24,535 to the Bombay Municipal Corporation as and by way of penalty for the default in making payment of municipal taxes. This amount was claimed as a deduction. The Income-tax Officer rejected the claim treating the payment as penalty. The Commissioner of Income-tax (Appeals), however, held that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of any tax in respect of which a notice of demand has been served under section 202 does not pay the sum due within three months of the service of such notice and if no appeal is preferred against the said tax under section 217, he shall be liable to pay such amount by way of penalty, as may be determined by the Commissioner, not exceeding 20 per cent. of the amount of tax. The question whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equires that the order of the Commissioner determining the amount of penalty shall be served on the assessee. Section 208 gives to the Commissioner discretion to remit the penalty payable under section 207A. Looking to these provisions it would not be correct to say that the penalty levied under section 207A is not a penalty but payment of interest. Section 471 lays down a table in respect of cer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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