https://www.taxtmi.com/caselaws?id=8327 Penalty for non-payment of a valid tax demand under section 46(1) arose independently of the assessment proceedings, so a later appellate reduction of the assessed tax did not extinguish the penalty altogether. The assessee remained liable because default occurred after a valid notice of demand, but the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 prevented recovery of any excess over the reduced Government dues. The penalty demand was therefore restricted to the amount legally recoverable after the appeal, and the excess could not be enforced. en-us Sat, 04 Mar 1972 00:00:00 +0530 Thu, 09 Apr 2009 18:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8327 Penalty for non-payment of a valid tax demand under section 46(1) arose independently of the assessment proceedings, so a later appellate reduction of the assessed tax did not extinguish the penalty altogether. The assessee remained liable because default occurred after a valid notice of demand, but the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 prevented recovery of any excess over the reduced Government dues. The penalty demand was therefore restricted to the amount legally recoverable after the appeal, and the excess could not be enforced. Case-Laws Income Tax Sat, 04 Mar 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8327