https://www.taxtmi.com/caselaws?id=20359 The court ruled in favor of the assessee, holding that when the assessed tax is fully covered by advance tax or tax deducted at source, no penalty under section 271(1)(a) of the Income-tax Act is applicable. The court emphasized that penalty is calculated based on the assessed tax, which is reduced by amounts already paid. Therefore, if no tax liability remains after assessment, no penalty is leviable. The court clarified that penalty provisions under section 271(2) only apply when a penalty is imposable under section 271(1). Judge D. M. Patnaik concurred with the judgment. en-us Fri, 08 Oct 1993 00:00:00 +0530 Fri, 13 Nov 2009 15:13:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20359 The court ruled in favor of the assessee, holding that when the assessed tax is fully covered by advance tax or tax deducted at source, no penalty under section 271(1)(a) of the Income-tax Act is applicable. The court emphasized that penalty is calculated based on the assessed tax, which is reduced by amounts already paid. Therefore, if no tax liability remains after assessment, no penalty is leviable. The court clarified that penalty provisions under section 271(2) only apply when a penalty is imposable under section 271(1). Judge D. M. Patnaik concurred with the judgment. Case-Laws Income Tax Fri, 08 Oct 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20359