https://www.taxtmi.com/caselaws?id=346217 The ITAT held that the penalty imposed under Section 140A(3) of the Income Tax Act was unsustainable as the correct section for penalty imposition should have been Section 221. The failure to issue a notice under Section 221 denied the assessee a fair opportunity to explain the delay in tax payment. The ITAT deleted the penalty, emphasizing procedural compliance and acknowledging the financial constraints faced by the assessee. The appeal of the assessee was allowed, and the revenue's appeal against the penalty reduction was dismissed, resulting in the penalty's deletion. en-us Thu, 05 Jan 2017 00:00:00 +0530 Mon, 07 Aug 2017 11:23:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=346217 The ITAT held that the penalty imposed under Section 140A(3) of the Income Tax Act was unsustainable as the correct section for penalty imposition should have been Section 221. The failure to issue a notice under Section 221 denied the assessee a fair opportunity to explain the delay in tax payment. The ITAT deleted the penalty, emphasizing procedural compliance and acknowledging the financial constraints faced by the assessee. The appeal of the assessee was allowed, and the revenue's appeal against the penalty reduction was dismissed, resulting in the penalty's deletion. Case-Laws Income Tax Thu, 05 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=346217