Section 221 of the Income Tax Act

Income-tax Act, 2025: s.412

Section 221 of the Income-tax Act, 1961 corresponds to section 412 (Penalty payable when tax in default) of the Income-tax Act, 2025.

Read section 412 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 221 is M/s Puri Construction Private Limited v. Addl. CIT & Ors. (159 Taxmann.com 444), cited in 42 of the 136 judgments on BharatTax that turn on this section.

Leading authorities on Section 221

M/s Puri Construction Private Limited v. Addl. CIT & Ors.

159 Taxmann.com 444 · 2024 · High Court

citing judgments

External Development Charges (EDC) paid by a developer to a government body like Haryana Shahari Vikas Pradhikaran (HSVP) for a development project are contractual payments, making them liable for tax deduction at source under Section 194C of the Income-tax Act, 1961.

Yashpal Sahni v. Rekha Hajarnavis

165 Taxmann 144 · 2007 · High Court

citing judgments

If a deductor deducts TDS but does not deposit it into the government account, the assessee is not liable for that TDS.

SBI v. DCIT, TDS, Kanpur

67 Taxmann.com 81 · 2016 · Reported

citing judgments

Judgments on Section 221

Naval Jyoti Barua, Delhi vs. DCIT, Central Circle-3, Delhi

In the result, the appeals are allowed for statistical purposes

ITA 1926/DEL/2021[2005-06]Status: DisposedITAT Delhi08 Jul 2022AY 2005-06

Bench: Shri Saktijit Dey & Dr. B.R.R. Kumar

Section 132(1)Section 142(1)Section 144Section 153CSection 221(1)

Raj Oil Mills Ltd, Mumbai vs. DCIT 8(3), Mumbai

In the result, both these appeals of assessee dismissed

ITA 7410/MUM/2010[2008-09]Status: DisposedITAT Mumbai10 Mar 2022AY 2008-09

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2008-09

For Appellant: NoneFor Respondent: Mr. T. Shankar, CIT-DR

Section 221Section 69C

Vishwanath Mhatarji Mete, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle -1, Aurangabad

In the result, the appeal filed by the assessee in ITA

ITA 1349/PUN/2018[2008-09]Status: DisposedITAT Pune04 Jan 2022AY 2008-09

Bench: Shri Inturi Rama Rao & Shri Ravish Soodआयकर अपील सं. / Ita Nos.1349 To 1354/Pun/2018 िनधा"रण वष" / Assessment Years: 2008-09 To 2013-14 Vishwanath Mhatarji Mete, Vs. Acit, Circle- 1, Plot No.E-10, Midc Area, Aurangabad. Waluj, Aurangabad-431136. Pan : Akapm0524B Appellant Respondent Assessee By : None Revenue By : Shri M. G. Jasnani Date Of Hearing 04.01.2022 : Date Of Pronouncement 04.01.2022 : आदेश / Order Per Bench : These Are The Appeals Filed By The Assessee Directed Against The Respective Orders Of Ld. Commissioner Of Income Tax (Appeals)- 1, Aurangabad [‘Cit(A)’ For Short] Confirming The Levy Of Penalty U/S 221 Of The Income Tax Act, 1961 (‘The Act’) For The Assessment Years 2008-09 To 2013-14. 2. Since The Identical Facts & Issues Are Involved In All These Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1349/Pun/2018 For The Assessment Year 2008-09 Are Stated Herein.

For Appellant: NoneFor Respondent: Shri M. G. Jasnani

Section 154Section 221

Vishwanath Mhatarji Mete, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle -1, Aurangabad

In the result, the appeal filed by the assessee in ITA

ITA 1351/PUN/2018[2010-11]Status: DisposedITAT Pune04 Jan 2022AY 2010-11

Bench: Shri Inturi Rama Rao & Shri Ravish Soodआयकर अपील सं. / Ita Nos.1349 To 1354/Pun/2018 िनधा"रण वष" / Assessment Years: 2008-09 To 2013-14 Vishwanath Mhatarji Mete, Vs. Acit, Circle- 1, Plot No.E-10, Midc Area, Aurangabad. Waluj, Aurangabad-431136. Pan : Akapm0524B Appellant Respondent Assessee By : None Revenue By : Shri M. G. Jasnani Date Of Hearing 04.01.2022 : Date Of Pronouncement 04.01.2022 : आदेश / Order Per Bench : These Are The Appeals Filed By The Assessee Directed Against The Respective Orders Of Ld. Commissioner Of Income Tax (Appeals)- 1, Aurangabad [‘Cit(A)’ For Short] Confirming The Levy Of Penalty U/S 221 Of The Income Tax Act, 1961 (‘The Act’) For The Assessment Years 2008-09 To 2013-14. 2. Since The Identical Facts & Issues Are Involved In All These Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1349/Pun/2018 For The Assessment Year 2008-09 Are Stated Herein.

For Appellant: NoneFor Respondent: Shri M. G. Jasnani

Section 154Section 221

Vishwanath Mhatarji Mete, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle -1, Aurangabad

In the result, the appeal filed by the assessee in ITA

ITA 1354/PUN/2018[2013-14]Status: DisposedITAT Pune04 Jan 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Ravish Soodआयकर अपील सं. / Ita Nos.1349 To 1354/Pun/2018 िनधा"रण वष" / Assessment Years: 2008-09 To 2013-14 Vishwanath Mhatarji Mete, Vs. Acit, Circle- 1, Plot No.E-10, Midc Area, Aurangabad. Waluj, Aurangabad-431136. Pan : Akapm0524B Appellant Respondent Assessee By : None Revenue By : Shri M. G. Jasnani Date Of Hearing 04.01.2022 : Date Of Pronouncement 04.01.2022 : आदेश / Order Per Bench : These Are The Appeals Filed By The Assessee Directed Against The Respective Orders Of Ld. Commissioner Of Income Tax (Appeals)- 1, Aurangabad [‘Cit(A)’ For Short] Confirming The Levy Of Penalty U/S 221 Of The Income Tax Act, 1961 (‘The Act’) For The Assessment Years 2008-09 To 2013-14. 2. Since The Identical Facts & Issues Are Involved In All These Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1349/Pun/2018 For The Assessment Year 2008-09 Are Stated Herein.

For Appellant: NoneFor Respondent: Shri M. G. Jasnani

Section 154Section 221

Vishwanath Mhatarji Mete, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle -1, Aurangabad

In the result, the appeal filed by the assessee in ITA

ITA 1353/PUN/2018[2012-13]Status: DisposedITAT Pune04 Jan 2022AY 2012-13

Bench: Shri Inturi Rama Rao & Shri Ravish Soodआयकर अपील सं. / Ita Nos.1349 To 1354/Pun/2018 िनधा"रण वष" / Assessment Years: 2008-09 To 2013-14 Vishwanath Mhatarji Mete, Vs. Acit, Circle- 1, Plot No.E-10, Midc Area, Aurangabad. Waluj, Aurangabad-431136. Pan : Akapm0524B Appellant Respondent Assessee By : None Revenue By : Shri M. G. Jasnani Date Of Hearing 04.01.2022 : Date Of Pronouncement 04.01.2022 : आदेश / Order Per Bench : These Are The Appeals Filed By The Assessee Directed Against The Respective Orders Of Ld. Commissioner Of Income Tax (Appeals)- 1, Aurangabad [‘Cit(A)’ For Short] Confirming The Levy Of Penalty U/S 221 Of The Income Tax Act, 1961 (‘The Act’) For The Assessment Years 2008-09 To 2013-14. 2. Since The Identical Facts & Issues Are Involved In All These Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1349/Pun/2018 For The Assessment Year 2008-09 Are Stated Herein.

For Appellant: NoneFor Respondent: Shri M. G. Jasnani

Section 154Section 221

Vishwanath Mhatarji Mete, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle -1, Aurangabad

In the result, the appeal filed by the assessee in ITA

ITA 1352/PUN/2018[2011-12]Status: DisposedITAT Pune04 Jan 2022AY 2011-12

Bench: Shri Inturi Rama Rao & Shri Ravish Soodआयकर अपील सं. / Ita Nos.1349 To 1354/Pun/2018 िनधा"रण वष" / Assessment Years: 2008-09 To 2013-14 Vishwanath Mhatarji Mete, Vs. Acit, Circle- 1, Plot No.E-10, Midc Area, Aurangabad. Waluj, Aurangabad-431136. Pan : Akapm0524B Appellant Respondent Assessee By : None Revenue By : Shri M. G. Jasnani Date Of Hearing 04.01.2022 : Date Of Pronouncement 04.01.2022 : आदेश / Order Per Bench : These Are The Appeals Filed By The Assessee Directed Against The Respective Orders Of Ld. Commissioner Of Income Tax (Appeals)- 1, Aurangabad [‘Cit(A)’ For Short] Confirming The Levy Of Penalty U/S 221 Of The Income Tax Act, 1961 (‘The Act’) For The Assessment Years 2008-09 To 2013-14. 2. Since The Identical Facts & Issues Are Involved In All These Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1349/Pun/2018 For The Assessment Year 2008-09 Are Stated Herein.

For Appellant: NoneFor Respondent: Shri M. G. Jasnani

Section 154Section 221

Vishwanath Mhatarji Mete, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle -1, Aurangabad

In the result, the appeal filed by the assessee in ITA

ITA 1350/PUN/2018[2009-10]Status: DisposedITAT Pune04 Jan 2022AY 2009-10

Bench: Shri Inturi Rama Rao & Shri Ravish Soodआयकर अपील सं. / Ita Nos.1349 To 1354/Pun/2018 िनधा"रण वष" / Assessment Years: 2008-09 To 2013-14 Vishwanath Mhatarji Mete, Vs. Acit, Circle- 1, Plot No.E-10, Midc Area, Aurangabad. Waluj, Aurangabad-431136. Pan : Akapm0524B Appellant Respondent Assessee By : None Revenue By : Shri M. G. Jasnani Date Of Hearing 04.01.2022 : Date Of Pronouncement 04.01.2022 : आदेश / Order Per Bench : These Are The Appeals Filed By The Assessee Directed Against The Respective Orders Of Ld. Commissioner Of Income Tax (Appeals)- 1, Aurangabad [‘Cit(A)’ For Short] Confirming The Levy Of Penalty U/S 221 Of The Income Tax Act, 1961 (‘The Act’) For The Assessment Years 2008-09 To 2013-14. 2. Since The Identical Facts & Issues Are Involved In All These Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1349/Pun/2018 For The Assessment Year 2008-09 Are Stated Herein.

For Appellant: NoneFor Respondent: Shri M. G. Jasnani

Section 154Section 221

M/S. Deccan Charters (P) Ltd, Bangalore vs. The Deputy Commissioner of Income Tax (TDS) Circle-1(1), Bangalore

In the result, both the appeals filed by the assessee are partly allowed

ITA 1284/BANG/2017[2014-15]Status: DisposedITAT Bangalore22 Nov 2021AY 2014-15

Bench: Shri N.V. Vasudevan, Vice- & Shri Chandra Poojari

For Appellant: Shri Suresh Muthukrishnan, CAFor Respondent: Addl. CIT (DR)

Section 201(1)Section 221

M/S. Deccan Charters (P) Ltd, Bangalore vs. The Deputy Commissioner of Income Tax (TDS) Circle-1(1), Bangalore

In the result, both the appeals filed by the assessee are partly allowed

ITA 1283/BANG/2017[2013-14]Status: DisposedITAT Bangalore22 Nov 2021AY 2013-14

Bench: Shri N.V. Vasudevan, Vice- & Shri Chandra Poojari

For Appellant: Shri Suresh Muthukrishnan, CAFor Respondent: Addl. CIT (DR)

Section 201(1)Section 221

Dharti Dredging & Infrastructure Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle 1(1) TDS, Hyderabad

Appeal is dismissed

ITA 509/HYD/2019[2018-19]Status: DisposedITAT Hyderabad22 Apr 2021AY 2018-19

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: NoneFor Respondent: Sh. Rohit Muzumdar, CIT-D.R

Section 200(1)Section 201(1)Section 221Section 221(1)

M/S.Sss Projects Ltd vs. The Deputy Commissioner of Income Tax

In the result, the appeal is disposed of

ITA/249/2011HC Karnataka01 Feb 2021

Bench: ALOK ARADHE,R. NATARAJ

Section 140A(3)Section 221Section 260

Shreyas Land Pvt.Ltd, Pune vs. Income-Tax Officer, Panvel

In the result, the appeal of assessee is partly allowed

ITA 973/PUN/2017[2013-14]Status: DisposedITAT Pune06 Oct 2020AY 2013-14

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

For Appellant: N O N EFor Respondent: Shri Alok Malviya

Section 207Section 208Section 211Section 221

M/S. Mantri Developers Private Limited (Amalgamated Company in Respect of Proceedings Against the Erstwhile M/S. Mantri Mansion Private Limited), Bangalore vs. The Assistant Commissioner of Income Tax, TDS Circle- 2(1), Bangalore

In the result, the appeal of the assessee is dismissed as withdrawn

ITA 2088/BANG/2019[2017-18]Status: DisposedITAT Bangalore09 Sept 2020AY 2017-18

Bench: Shri George George K. & Shri B.R. Baskaranassessment Year: 2017-18

For Appellant: Shri Bhairav Kuttaiah, A.RFor Respondent: Shri S. Sundar Rajan, D.R

Shri.Kodaghihalli Thimmaiah Ramanna, Bangalore vs. Income Tax Officer Ward-2(3)(5), Bangalore

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 303/BANG/2019[2006-07]Status: DisposedITAT Bangalore14 Aug 2020AY 2006-07

Bench: Shri A. K. Garodia & Smt. Beena Pillai

For Appellant: Shri. Mallaha Rao, AdvocateFor Respondent: Shri. Manjeet Singh, Addl. CIT (DR)(ITAT), Bengaluru

Shri.Kodaghihalli Thimmaiah Ramanna, Bangalore vs. Income Tax Officer Ward-2(3)(5), Bangalore

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 302/BANG/2019[2005-06]Status: DisposedITAT Bangalore14 Aug 2020AY 2005-06

Bench: Shri A. K. Garodia & Smt. Beena Pillai

For Appellant: Shri. Mallaha Rao, AdvocateFor Respondent: Shri. Manjeet Singh, Addl. CIT (DR)(ITAT), Bengaluru

Basic Shiksha Adhikari, Serv Shiksha Abhiyan, Ayodhya vs. Income Tax Offcer (TDS), Faizabad

In the result, all the appeals are allowed

ITA 53/LKW/2019[2013-14]Status: DisposedITAT Lucknow19 Mar 2020AY 2013-14

Bench: Shri. A. D. Jain & Shri B.R.R. Kumar

For Appellant: Shri Ankur Sharma, AdvocateFor Respondent: Shri Ajay Kumar, D.R

Section 192Section 194CSection 201(1)Section 221

Basic Shiksha Adhikari, Serv Shiksha Abhiyan, Ayodhya vs. Income Tax Offcer (TDS), Faizabad

In the result, all the appeals are allowed

ITA 52/LKW/2019[2012-13]Status: DisposedITAT Lucknow19 Mar 2020AY 2012-13

Bench: Shri. A. D. Jain & Shri B.R.R. Kumar

For Appellant: Shri Ankur Sharma, AdvocateFor Respondent: Shri Ajay Kumar, D.R

Section 192Section 194CSection 201(1)Section 221

Basic Shiksha Adhikari, Serv Shiksha Abhiyan, Ayodhya vs. Income Tax Offcer (TDS), Faizabad

In the result, all the appeals are allowed

ITA 51/LKW/2019[2011-12]Status: DisposedITAT Lucknow19 Mar 2020AY 2011-12

Bench: Shri. A. D. Jain & Shri B.R.R. Kumar

For Appellant: Shri Ankur Sharma, AdvocateFor Respondent: Shri Ajay Kumar, D.R

Section 192Section 194CSection 201(1)Section 221

ACIT 13(3)(1), Mumbai vs. Windosr Realty P.Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed as not maintainable

ITA 1503/MUM/2017[2013-14]Status: DisposedITAT Mumbai16 Sept 2019AY 2013-14

Bench: Shri Saktijit Dey, Jm & Shri M.Balaganesh, Am Acit – 13(3)(1) Vs. M/S. Windsor Realty Pvt.Ltd Room No.229, 2Nd Floor Podium, Windsor, Aayakar Bhavan Off. Cst Road, Near Bkc M.K.Road, Santacruz (E) Mumbai – 400 020 Mumbai -400 098 Pan/Gir No.Aaace1883E (Appellant) .. (Respondent)