TaxTMI 
TaxTMI 
2018 (3) TMI 208
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....w.s. 140A(3) of the Income Tax Act, 1961 (in short 'the Act'). 2. In this appeal, the solitary dispute is with regard to the penalty imposed u/s 221(1) r.w.s. 140A(3) of the Act of Rs. 25,98,646/-. In brief, the relevant facts are that the appellant-assessee filed a return of income for Assessment Year 2009-10 on 30.09.2009 declaring an income of Rs. 9,93,58,270/-, which was not accompanied by self-assessment tax payable at Rs. 2,59,89,461/-. The Assessing Officer issued a communication to the assessee dated 18.01.2010 requiring the assessee to produce the proof of payment of self-assessment tax alongwith the interest thereon. In response, assessee vide letter dated 08.02.2010 sought more time to clear the liability of payment of self-as....
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....wist to the controversy by pointing out that the provisions of Sec. 140A(3) of the Act, as it stood for the year under consideration, did not envisage levy of penalty for the delay in deposit of self-assessment tax. In order to appreciate the point sought to be raised by the learned representative, the following discussion is relevant. 4. Sec. 140A(3) of the Act, as it stands for the year under consideration, reads as under :- "140A(3) If any assessee fails to pay the whole or any part of such tax [or interest or both] in accordance with the provisions of sub-section (1), he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax [or interest or both] re....
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....ld provisions of subsection (3) of the section provided for levy of penalty for non-payment of self-assessment tax, since the rate of mandatory interest for failure to pay the tax has now been increased, it is not necessary to retain this provision any more. The amending Act has accordingly omitted the said sub section (3). 4.18 : In order to vest the power of recovery of tax and interest due under this section on the basis of the return, amending Act 1987, has inserted a new sub section (3) in the section to provide that if any assessee has not paid self assessment tax and interest in full before filing the return, he shall be deemed to be an assessee in default in respect of such tax and interest." Quite clearly, if one is to ....
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....ably, the penalty envisaged Sec. 140A(3) in the unamended provision was on the statute alongwith the penalty envisaged u/s 221 of the Act. Once Sec. 140A(3) of the Act has been amended w.e.f. 01.04.1989, as we have seen earlier, there is no amendment of Sec. 221 of the Act and it continues to remain the same. What we are trying to emphasise is if the plea of the Revenue is to be accepted, based on the amendment to Sec. 140A(3) of the Act, it would mean that prior to 01.04.1989 the same default invited penal provisions under two sections, namely, Sec. 140A(3) as well as Sec. 221(1) of the Act, which would appear to be peculiar and unintended. Furthermore, the intention of the legislature at the time of insertion of the amended Sec. 140A(3) m....