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| The Tax Publishers2020 TaxPub(DT) 2540 (Hyd-Trib) INCOME TAX ACT, 1961
Section 221(1)
Where the amended section 140A(3) w.e.f. 01-4-1989 does not envisage any penalty for non-payment of self-assessment tax, the AO was not justified in levying penalty by making recourse to section 221(1) and hence, the penalty levied under section 221(1) was liable to be deleted.
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Penalty under section 221(1) - Leviability - Non-payment of admitted tax -
Assessee filed his return of income, but did not pay any taxes on the admitted income. Thereafter, he filed a revised computation of income, but AO did not accept the same. Assessee filed an appeal against the assessment order before CIT (A), who accepted the revised computation of income and deleted the addition made by the AO. Meanwhile, the AO issued a notice under section 221(1) for levy of penalty for non-payment of admitted tax. Held: Since the very addition had been deleted and there was no outstanding demand of tax, the penalty levied under section 221 was not warranted. Further, the amended section 140A(3) w.e.f. 01-4-1989 does not envisage any penalty for non-payment of self-assessment tax, therefore, the AO was not justified in levying penalty by making recourse to section 221(1) and hence, the penalty levied under section 221(1) was deleted.
Followed:Heddle Knowledge Private Limited (formerly Ackruti City Knowledge Pvt. Ltd.) v. ITO (2018) 90 taxmann.com 376 (Mumbai) : 2018 TaxPub(DT) 1043 (Mum-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, HYDERABAD BENCH
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