Assessee-company engaged in business of manufacturing of textiles, filed its return claiming MAT credit of certain amount and refund of advance taxes paid. However, amount of MAT credit computed by assessee was incorrect. The original return filed by assessee was held to be defective/invalid. Thereafter the assessee filed revised return under section 139(4) and also paid additional tax liability in two instalments. Assessing Officer held that excess MAT credit was an intentionally wrong claim made by assessee and  held that assessee was ‘assessee-in-default’ under section 221(1) for not paying tax liability at time of filling of original return and, accordingly, levied penalty. CIT(A) affirmed the order of the CIT(A). On appeal the Tribunal held that  since original return filed by assessee was already held to be invalid, no penalty could be levied upon assessee stating that assessee had failed to pay tax according to said invalid return. (AY. 2016-17 )