https://www.taxtmi.com/caselaws?id=279579 Penalty under Section 271(1)(c) could not survive once the underlying addition was held not includible in the assessee's income, because the basis for the penalty ceased to exist. The Rajasthan HC noted that when the amount forming the foundation of penalty proceedings is deleted, the penalty loses its legal footing and cannot be sustained. As the foundation had disappeared, the referred question became unnecessary and the reference was disposed of without an answer. en-us Tue, 23 Sep 1986 00:00:00 +0530 Tue, 26 Mar 2019 10:25:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279579 Penalty under Section 271(1)(c) could not survive once the underlying addition was held not includible in the assessee's income, because the basis for the penalty ceased to exist. The Rajasthan HC noted that when the amount forming the foundation of penalty proceedings is deleted, the penalty loses its legal footing and cannot be sustained. As the foundation had disappeared, the referred question became unnecessary and the reference was disposed of without an answer. Case-Laws Income Tax Tue, 23 Sep 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279579