M/S. AMIN CHAND PAYARELAL vs INSPECTING ASSTT.COMMNR.,INCOME TAX &ORS

The Supreme Court upheld the Division Bench's decision regarding the imposition of penalty under Section 271(1)(a) of the Income Tax Act, 1961, affirming that mere payment of interest for late filing does not exempt the assessee from penalty. The Court clarified that the Inspecting Assistant Commissioner had jurisdiction to impose the penalty, and the appellant's arguments regarding jurisdiction were not maintained. Consequently, the appeal was dismissed, affirming the High Court's ruling that the penalty was validly imposed.