https://www.taxtmi.com/caselaws?id=177764 Penalty under s. 140A(3) for non-payment of self-assessment tax turned on whether "tax payable" in s. 140A(1) referred to tax on income required to be returned despite an incorrect computation. The ITAT held that the returned income itself showed omission to apply s. 80VVA, establishing default on the return-filing date; the plea of bona fide mistake was rejected for want of contemporaneous explanation or supporting affidavit and as an apparent afterthought, so penalty liability was upheld. However, the AO applied an inapplicable amended formula; under s. 140A(3) as on the date of default, penalty was discretionary up to 50% and not month-linked, and the AO failed to exercise discretion. Penalty was reduced to a fixed sum and the appeal partly allowed. en-us Mon, 29 Nov 1999 00:00:00 +0530 Thu, 01 Jan 2026 18:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177764 Penalty under s. 140A(3) for non-payment of self-assessment tax turned on whether "tax payable" in s. 140A(1) referred to tax on income required to be returned despite an incorrect computation. The ITAT held that the returned income itself showed omission to apply s. 80VVA, establishing default on the return-filing date; the plea of bona fide mistake was rejected for want of contemporaneous explanation or supporting affidavit and as an apparent afterthought, so penalty liability was upheld. However, the AO applied an inapplicable amended formula; under s. 140A(3) as on the date of default, penalty was discretionary up to 50% and not month-linked, and the AO failed to exercise discretion. Penalty was reduced to a fixed sum and the appeal partly allowed. Case-Laws Income Tax Mon, 29 Nov 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177764