2002 (1) TMI 13 - HC - Income Tax

Self-Assessment - Penalty - Default In Payment - 1. Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal is legally justified in confirming the order of the Commissioner of Income-tax (Appeals) whereby the penalty levied under section 140A(3) amounting to Rs. 1, 13, 000 was cancelled? - 2. Whether it is necessary to prove existence of any mala fide intention or fraudulent or contumacious conduct of the assessee for imposition of penalty for the default committed under section 140A of the Income-tax Act? - Tribunal found that there was no justified reason to inflict the penalty. - Tribunal has confirmed the finding of the Commissioner of Income-tax (Appeals) on the basis of material on record. No referable question of law arises out of the order of the Tribunal. The reference application is rejected.

Summary

The High Court of Rajasthan rejected a reference application under section 256(2) of the Income Tax Act, 1961, regarding the imposition of a penalty under section 140A(3) on an assessee for default in tax payment. The court upheld the decision of the Commissioner of Income-tax (Appeals) to cancel the penalty, citing the assessing authority's discretion to impose or not impose a penalty based on the facts and circumstances of the case. The court relied on a previous judgment to support its decision.