https://www.taxtmi.com/caselaws?id=38224 The court held that no penalty under section 271(1)(c) is leviable when no tax is payable by the assessee. It emphasized that penalty is linked to the tax payable by the assessee and cannot be imposed if no tax liability exists. The court rejected the idea of compartmentalizing penalty imposition and quantification separately. Additionally, it clarified that section 271(2) applies to registered firms only when section 271(1) is triggered, and it cannot be applied independently of tax liability. The court ruled in favor of the assessee, affirming the Tribunal's decision that no penalty is exigible in this scenario. en-us Wed, 23 Mar 1977 00:00:00 +0530 Mon, 05 Apr 2010 10:56:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38224 The court held that no penalty under section 271(1)(c) is leviable when no tax is payable by the assessee. It emphasized that penalty is linked to the tax payable by the assessee and cannot be imposed if no tax liability exists. The court rejected the idea of compartmentalizing penalty imposition and quantification separately. Additionally, it clarified that section 271(2) applies to registered firms only when section 271(1) is triggered, and it cannot be applied independently of tax liability. The court ruled in favor of the assessee, affirming the Tribunal's decision that no penalty is exigible in this scenario. Case-Laws Income Tax Wed, 23 Mar 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38224