TMI Blog2020 (12) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... om 01.04.1989 does not envisage any penalty for non-payment of self-assessment tax, the Assessing Officer was not justified in levying the impugned penalty by making recourse to section 221 of the Act. We, accordingly, direct the Assessing Officer to delete the penalty imposed under section 140A read with section 221(1) of the Act. - Decided in favour of assessee. - ITA No. 1746/DEL/2015 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been shown as tax payable under section 140A of the Act. Since the tax was not paid till the date of finalisation of assessment under section 143(3) of the Act, the AO proceeded to levy penalty under section 140A(3) read with section 221(1) of the Act amounting to ₹ 37,41,574/-. 4. The assessee carried the matter before the CIT(A) but without any success. 5. Before us, the ld. cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x, since the rate of mandatory interest for failure to pay the tax has now been increased, it is not necessary to retain this provision any more. The amending Act has accordingly omitted the said sub section (3). 4.18 : In order to vest the power of recovery of tax and interest due under this section on the basis of the return, amending Act 1987, has inserted a new sub section (3) in the sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in payment of self-assessment tax w.e.f. 01.04.1989 onwards. 8. Therefore, considered in the aforesaid light, in our view, the fact that the amended section 140(3) with effect from 01.04.1989 does not envisage any penalty for non-payment of self-assessment tax, the Assessing Officer was not justified in levying the impugned penalty by making recourse to section 221 of the Act. We, accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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