High Court upholds Tribunal decision deleting penalty under Income-tax Act, citing assessee's financial inability as valid reason.

The High Court of Bombay ruled in favor of the assessee, upholding the Tribunal's decision to delete the penalty under section 221(1) of the Income-tax Act, 1961. The Court found the assessee's financial inability to pay advance tax as a valid reason, leading to the penalty deletion.

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The High Court of Bombay ruled in favor of the assessee, stating that the Tribunal did not err in law in deleting the penalty of Rs. 1,000 under section 221(1) of the Income-tax Act, 1961. The Tribunal found that the assessee was unable to pay advance tax due to financial inability, which was considered a valid reason. The question was answered in the negative, favoring the assessee. No costs were awarded.

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