https://www.taxtmi.com/caselaws?id=20115 Penalty for late filing under section 271(1)(a) applies only where assessed tax remains payable after adjusting advance tax and tax deducted at source. If those payments equal or exceed the tax determined on regular assessment, the assessed tax becomes nil and the penalty base disappears, so no penalty can be computed. The fiction in section 271(2) operates only after an actual penalty liability arises on positive assessed tax; it cannot be used to create liability where none exists after such adjustment. The text also distinguishes an earlier case in which assessed tax remained positive. On the stated facts, no penalty was leviable on the registered firm. en-us Wed, 05 Jan 1994 00:00:00 +0530 Wed, 11 Nov 2009 17:18:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20115 Penalty for late filing under section 271(1)(a) applies only where assessed tax remains payable after adjusting advance tax and tax deducted at source. If those payments equal or exceed the tax determined on regular assessment, the assessed tax becomes nil and the penalty base disappears, so no penalty can be computed. The fiction in section 271(2) operates only after an actual penalty liability arises on positive assessed tax; it cannot be used to create liability where none exists after such adjustment. The text also distinguishes an earlier case in which assessed tax remained positive. On the stated facts, no penalty was leviable on the registered firm. Case-Laws Income Tax Wed, 05 Jan 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20115