https://www.taxtmi.com/caselaws?id=8692 A penalty under the Indian Income-tax Act could not be sustained against a Hindu undivided family that had already ceased to exist by partition when the penalty order was passed. The Court held that the deeming fiction in section 25A(3), under which the family is treated as continuing, applies only where no order recognising partition has been made; once partition is recognised in appellate proceedings, that fiction no longer supports penalty proceedings. The Court preferred the view that penalty cannot be imposed on a non-existent assessable entity and rejected the contrary approach as an improper extension of assessment principles to penalty matters. The Tribunal was therefore justified in cancelling the penalty. en-us Fri, 11 Aug 1972 00:00:00 +0530 Tue, 02 Jun 2009 20:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8692 A penalty under the Indian Income-tax Act could not be sustained against a Hindu undivided family that had already ceased to exist by partition when the penalty order was passed. The Court held that the deeming fiction in section 25A(3), under which the family is treated as continuing, applies only where no order recognising partition has been made; once partition is recognised in appellate proceedings, that fiction no longer supports penalty proceedings. The Court preferred the view that penalty cannot be imposed on a non-existent assessable entity and rejected the contrary approach as an improper extension of assessment principles to penalty matters. The Tribunal was therefore justified in cancelling the penalty. Case-Laws Income Tax Fri, 11 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8692