Payment of self-assessment tax instantly on detection of default saves assessee from clutches

IT : Where assessee filed return of income on 28-9-2009 and paid self-assessment tax under section 140A on 19-1-2010, since assessee had paid self-assessment tax immediately when fact regarding non-payment came to its notice, it was not liable for penalty to be levied under section 221(1)

■■■

[2013] 39 taxmann.com 124 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'A'

Agio Pharmaceuticals Ltd.

v.

Assistant Commissioner of Income-tax -8(1)*

I.P. BANSAL, JUDICIAL MEMBER 
AND SANJAY ARORA, ACCOUNTANT MEMBER

IT APPEAL NO. 6911 (MUM.) OF 2011
[ASSESSMENT YEAR 2009-10]

SEPTEMBER  4, 2013 

Section 221, read with section 140A, of the Income-tax Act, 1961 - Collection and recovery of tax - Penalty payable where tax in default [Effect of payment of self-assessment tax] - Assessment year 2009-10 -Assessee filed return of income on 28-9-2009 and paid self-assessment tax under section 140A on 19-1-2010 - Accordingly Assessing Officer levied penalty under section 221(1) upon assessee - Whether since assessee had paid self-assessment tax immediately when fact regarding non-payment came to its notice, it could not be said that assessee's act was deliberate in defiance of law - Held, yes - Whether, therefore, assessee was not liable for penalty to be levied under section 221(1) - Held, yes [Para 6.1] [In favour of assessee]