https://www.taxtmi.com/caselaws?id=344996 The court held that the term "tax in arrears" in Section 221(1) of the Income Tax Act does not include the interest component. Therefore, while imposing a penalty under Section 221(1), interest under Sections 234A, 234B, and 234C should be excluded. The court upheld the ITAT's decision to exclude interest, emphasizing that the penalty is linked to the tax amount alone. Precedents highlighting the mandatory nature of interest were deemed irrelevant to the issue at hand. The appeal was dismissed, and no costs were awarded to the appellant. en-us Sat, 01 Jul 2017 00:00:00 +0530 Tue, 01 Aug 2017 11:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=344996 The court held that the term "tax in arrears" in Section 221(1) of the Income Tax Act does not include the interest component. Therefore, while imposing a penalty under Section 221(1), interest under Sections 234A, 234B, and 234C should be excluded. The court upheld the ITAT's decision to exclude interest, emphasizing that the penalty is linked to the tax amount alone. Precedents highlighting the mandatory nature of interest were deemed irrelevant to the issue at hand. The appeal was dismissed, and no costs were awarded to the appellant. Case-Laws Income Tax Sat, 01 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=344996