https://www.taxtmi.com/caselaws?id=29053 For section 271(3)(b) of the Income-tax Act, the relevant test is the income honestly and bona fide believed by the assessee to be taxable, not necessarily the income finally assessed by the department. The provision applies where a person who failed to comply with a notice under section 139(2) or section 148 proves that he had no income liable to tax. On the facts, the Tribunal found that the assessee returned income below the taxable limit under a bona fide belief and that the difference from the assessed income arose from debatable disallowances; that factual finding required no interference. The separate argument on set-off of an earlier loss was unnecessary to decide the reference. en-us Wed, 09 Sep 1981 00:00:00 +0530 Wed, 10 Mar 2010 15:05:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29053 For section 271(3)(b) of the Income-tax Act, the relevant test is the income honestly and bona fide believed by the assessee to be taxable, not necessarily the income finally assessed by the department. The provision applies where a person who failed to comply with a notice under section 139(2) or section 148 proves that he had no income liable to tax. On the facts, the Tribunal found that the assessee returned income below the taxable limit under a bona fide belief and that the difference from the assessed income arose from debatable disallowances; that factual finding required no interference. The separate argument on set-off of an earlier loss was unnecessary to decide the reference. Case-Laws Income Tax Wed, 09 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29053