Amin Chand Payarelal vs Inspecting Asstt. ...

The Supreme Court upheld the Division Bench's decision, affirming that the imposition of penalty under Section 271(1)(a) of the Income Tax Act, 1961 was valid despite the appellant's claim of having paid interest for late filing of returns. The Court clarified that the jurisdiction of the Inspecting Assistant Commissioner to impose such penalties was not in dispute, and that merely paying interest does not exempt the assessee from penalty obligations. Consequently, the appeal was dismissed, maintaining the penalty imposed for the assessment years 1959-60 to 1965-66.