Shakaldev Mishra vs. Deputy /Assistant Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Shakaldev Mishra, has appealed against the order of the Commissioner of Income Tax (Appeals) dated 10th June 2022, passed for the assessment year 2014-15. The appeal is regarding the penalty of Rs.1,67,844/- levied by the Assessing Officer under section 221(1) read with section 140A(3) of the Income Tax Act for the failure to pay taxes on self-assessed income. The assessee claims that the penalty is not applicable as per the judgment of ITAT, Mumbai dated 19th January 2018 in the case of Heddle Knowledge Private Limited -vs.- ITO (ITA No. 7509/MUM/2011). The assessee's counsel argued that the penalty was not leviable as per the amended section 140A(3) of the Act, which was amended on 1st April 1989. The Tribunal found that the penalty was not sustainable as per the decision of the Coordinate Bench and the CBDT Circular No. 549 of 31.10.1989.…

Legal Issues

• 1. Whether the penalty levied under section 221(1) read with section 140A(3) of the Income Tax Act is sustainable?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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