No Section 140A(3) Penalty for Non-Payment of Taxes on Returned Income Post AY 1989-90

Shakaldev Mishra Vs Deputy /ACIT (ITAT Kolkata)

After the Amendment effected on 1st April, 1989, penalty under section 140A(3) is not imposable on non-payment of taxes on the returned income because that would be compensated by way of interest charged upon the assessee. The Tribunal has made reference to the CBDT Circular bearing No. 549 of 31.10.1989 particularly paragraph no. 4.17 and 4.18. Relying upon the coordinate bench decision in Heddle Knowledge Pvt. Ltd. vs. ITO, the penalty under section 140A(3) has been deleted.

In a significant

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