1997 (12) TMI 21 - HC - Income Tax

Summary

The High Court of Madras considered a case involving penalty levied under section 271(1)(a) of the Income-tax Act, 1961 for delay in filing a return by an assessee-firm for the assessment year 1973-74. The Appellate Tribunal held that since the tax deducted at source exceeded the tax demanded, resulting in a refund, the penalty was not justified. The court followed a previous decision and ruled in favor of the assessee, canceling the penalty. The court held that no penalty could be levied due to the excess tax deducted at source.