1976 (10) TMI 27 - HC - Income Tax

Summary

The High Court of Punjab and Haryana considered a case where an assessee failed to pay tax on self-assessment within the prescribed period. The Income-tax Officer levied a penalty under section 140A(3), which was later reduced by the Appellate Assistant Commissioner. The Income-tax Appellate Tribunal ultimately deleted the penalty as the assessee had paid the entire tax. The court held that the levy of penalty is not automatic and that the Income-tax Officer has discretion in imposing it. The court ruled in favor of the assessee, stating that the penalty was not justified.