https://www.taxtmi.com/caselaws?id=38943 The High Court of Madras ruled that a penalty can be imposed under section 221 of the Income-tax Act, 1961, even if the tax was paid after the default occurred but before the penalty order was issued. The Court emphasized that the liability to penalty is established upon default, regardless of when the tax is paid, and that the officer has discretion in deciding whether to levy a penalty. The Court directed the Tribunal to reconsider the appeal regarding the penalty imposed, without addressing the applicability of section 221 to a default in payment of advance tax. en-us Tue, 14 Dec 1976 00:00:00 +0530 Sat, 10 Apr 2010 14:13:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38943 The High Court of Madras ruled that a penalty can be imposed under section 221 of the Income-tax Act, 1961, even if the tax was paid after the default occurred but before the penalty order was issued. The Court emphasized that the liability to penalty is established upon default, regardless of when the tax is paid, and that the officer has discretion in deciding whether to levy a penalty. The Court directed the Tribunal to reconsider the appeal regarding the penalty imposed, without addressing the applicability of section 221 to a default in payment of advance tax. Case-Laws Income Tax Tue, 14 Dec 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38943