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Issues Involved:
1. Rectification of the Tribunal's order dated 9-5-2006. 2. Requirement of serving a Demand Notice u/s 156 before imposing penalty u/s 221. Summary: Issue 1: Rectification of the Tribunal's order dated 9-5-2006 The assessee filed a Miscellaneous Application seeking rectification of the Tribunal's order dated 9-5-2006 for the assessment year 2001-02, which was initially dismissed by the Tribunal on 7-3-2007. The assessee then filed a writ petition before the Hon'ble Bombay High Court, which set aside the Tribunal's order and directed the Tribunal to dispose of the Miscellaneous Application on merits. The Tribunal had previously held that no reasonable cause for not depositing the tax in time was established by the assessee, justifying the penalty u/s 221. Issue 2: Requirement of serving a Demand Notice u/s 156 before imposing penalty u/s 221 The assessee contended that no notice of demand u/s 156 was served along with the order u/s 140A before issuing the show-cause notice u/s 221, making the penalty imposition unlawful. The Tribunal noted that the tax and interest were payable based on the return filed by the assessee under the self-assessment provision u/s 140A(1), and the assessee failed to pay the full amount, making it a "deemed assessee in default" u/s 140A(3). The Tribunal concluded that there is no requirement under the Act for serving a separate notice of demand u/s 156 in cases of self-assessment tax. The Tribunal distinguished the assessee's case from the cited cases, emphasizing that the statutory provisions treat self-assessment tax and assessed tax differently. The Tribunal upheld the penalty u/s 221, finding no mistake apparent from the record in its previous order. Conclusion: The Tribunal dismissed the Miscellaneous Application of the assessee, affirming the penalty u/s 221 and clarifying that no separate notice of demand u/s 156 is required for self-assessment tax defaults.
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