DCIT Vs Smt. Sama Yashodha (ITAT Hyderabad)
ITAT Hyderabad held that penalty under section 221(1) of the Income Tax Act duly leviable for non-payment of self-assessment tax even if later it was concluded that there was no tax payable. Accordingly, appeal of revenue allowed.
Facts- The present appeal has been preferred by the revenue mainly contesting that CIT(A) ought to have upheld the order of the Assessing Officer passed, levying the penalty of Rs.95,97,051/- u/221(1) of the Income Tax Act.
Conclusion- Held that CIT(A) for deleting the penalty is that during the course of appellate proceedings the revised computation was admitted by the CIT(A), whereby no tax payable was reported by the assessee. The fact remains that in the Return of Income the assessee has declared income and not paid the income tax on the same. Even subsequently if the assessee succeeds in getting the relief on wrong declaration of income, the requirement of payment of self-assessment tax would not obliterated as prescribed u/s. 149(4) of the Income Tax Act. The assessee if gets relief from the appellate authority, then that will result in refund of tax along with interest, if any. The assessee himself cannot choose not to pay the self-assessment tax. Thus, the impugned order of the Ld. CIT(A) is set aside and the order of the Assessing Officer passed u/s.221(1) of the Act is restored. The appeal of the Revenue is allowed.
