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<h1>High Court dismisses petition on penalty deletion for failure to pay tax under section 221(1)</h1> The High Court dismissed the petition filed by the Commissioner of Income-tax, Ludhiana, seeking a reference regarding the deletion of penalty under ... Penalty For Default, Question Of Law, Stay Of Collection Of Tax The High Court dismissed the petition filed by the Commissioner of Income-tax, Ludhiana, under section 256(2) of the Income-tax Act, 1961. The petition sought a reference to the High Court regarding the deletion of penalty under section 221(1) for failure to pay tax by the assessee. The Tribunal upheld the deletion of penalty, stating that as the stay application was pending, the assessee could not be held liable for the penalty. The High Court found no error in the Tribunal's decision and dismissed the application.
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