https://www.taxtmi.com/caselaws?id=36177 Penalty under section 271(1)(a) was construed strictly as a penal provision, requiring both default in filing the return and satisfaction of the liability conditions in section 271(1)(i). Where the assessee had paid advance tax and had no tax arrears at the relevant time, it did not fall within the class of persons liable to penalty. Section 271(2) was held to operate only after liability under section 271(1)(a) read with section 271(1)(i) is first established, and its legal fiction was confined to computation. On that footing, section 271(2) was not attracted and penalty was not leviable. en-us Tue, 02 Dec 1980 00:00:00 +0530 Fri, 19 Mar 2010 17:41:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36177 Penalty under section 271(1)(a) was construed strictly as a penal provision, requiring both default in filing the return and satisfaction of the liability conditions in section 271(1)(i). Where the assessee had paid advance tax and had no tax arrears at the relevant time, it did not fall within the class of persons liable to penalty. Section 271(2) was held to operate only after liability under section 271(1)(a) read with section 271(1)(i) is first established, and its legal fiction was confined to computation. On that footing, section 271(2) was not attracted and penalty was not leviable. Case-Laws Income Tax Tue, 02 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36177