https://www.taxtmi.com/caselaws?id=29046 The High Court upheld the decision of the Appellate Assistant Commissioner and Tribunal to cancel the penalty imposed on the assessee-company under section 221 of the Income-tax Act for the assessment year 1965-66. The Court emphasized that the penalty should not have been levied as the assessee was making arrangements to pay the tax demanded, and the Tax Recovery Officer had granted instalments due to financial difficulties. The Court ruled in favor of the assessee, stating that the penalty imposition was not automatic and could be avoided with valid reasons for non-payment of tax. en-us Wed, 18 Nov 1981 00:00:00 +0530 Wed, 10 Mar 2010 14:05:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29046 The High Court upheld the decision of the Appellate Assistant Commissioner and Tribunal to cancel the penalty imposed on the assessee-company under section 221 of the Income-tax Act for the assessment year 1965-66. The Court emphasized that the penalty should not have been levied as the assessee was making arrangements to pay the tax demanded, and the Tax Recovery Officer had granted instalments due to financial difficulties. The Court ruled in favor of the assessee, stating that the penalty imposition was not automatic and could be avoided with valid reasons for non-payment of tax. Case-Laws Income Tax Wed, 18 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29046