https://www.taxtmi.com/caselaws?id=33652 The Court upheld the cancellation of the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 in a case involving reduction of share capital and alleged creation of fictitious loss. Despite the Tribunal's findings of a fictitious loss, the Court determined that there was no evidence of fraud by the assessee, as the reduction of share capital was lawful and done with court permission. The decision favored the assessee, emphasizing the requirement of evidence of concealment or inaccurate particulars to levy penalties, ultimately disposing of the reference in favor of the assessee. en-us Tue, 18 Sep 2007 00:00:00 +0530 Tue, 02 Jun 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33652 The Court upheld the cancellation of the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 in a case involving reduction of share capital and alleged creation of fictitious loss. Despite the Tribunal's findings of a fictitious loss, the Court determined that there was no evidence of fraud by the assessee, as the reduction of share capital was lawful and done with court permission. The decision favored the assessee, emphasizing the requirement of evidence of concealment or inaccurate particulars to levy penalties, ultimately disposing of the reference in favor of the assessee. Case-Laws Income Tax Tue, 18 Sep 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33652