Section 140A, read with section 221 of the Income-tax Act, 1961 – Self-assessment (Penalty) – Assessment year 2009-10 – For relevant year, assessee filed its return which was not accompanied by proof of payment of self-assessment tax – In response to show-cause notice, assessee raised a plea of financial stringency – Assessing Officer did not find reason advanced by assessee to be satisfactory to mitigate levy of penalty – He took a view that assessee had defaulted in payment of self-assessment tax within stipulated period and was thus liable to be treated as “assessee-in-default” as per provisions of section 140A(3) read with section 221(1) of Act – Accordingly, penalty order was passed for delayed payment of self-assessment tax – Whether in view of fact that amended section 140A(3) with effect from 1-4-1989 does not envisage any penalty for non-payment of self-assessment tax, Assessing Officer was not justified in levying penalty by making recourse to section 221(1) of Act – Held, yes [In favour of assessee]
Citation: [2018] 90 taxmann.com 376 (Mumbai – Trib.)