The Legislature did not envisage that consequent to the amendment, the default in payment of self-assessment tax would hitherto be covered by the scope of s. 221(1). S.221 remains unchanged, both during the pre and post amended s. 140A(3) and even in the pre-amended situation, penalty u/s. 221 was not attracted for default in payment of self-assessment tax. Thus, without there being any requisite corresponding amendment to S. 221 in consonance with the amendments carried out in S.140A(3) with effect from April 1, 1989, the Department cannot impose penalty u/s. 140A(3) read with S..221(1) of the Act. (AY. 2012-13)
Balraj Prakashchand Bansal v. Dy. CIT (2018) 64 ITR 62 (SN) (Mum.)(Trib.)
S. 221 : Penalty—Failure to pay self-assessment tax—amendment prescribing mandatory charge of interest—Amendment does not envisage penalty for non-payment of self-assessment tax. [S.140A(3), 221(1)]