https://www.taxtmi.com/caselaws?id=39249 For penalty computation under section 271(1)(a) read with section 271(2) of the Income-tax Act, a registered firm must be treated as an unregistered firm, and the statutory fiction must be carried through to its necessary consequences. The computation therefore requires the tax payable by the firm in the hypothetical character of an unregistered firm, not merely its assessed income as a registered firm. Where the annuity deposit scheme would apply to such an unregistered firm, the corresponding annuity deposit deduction under section 280-O cannot be ignored in working out the penalty base. The penalty is accordingly computed on the balance total income after allowing that deduction. en-us Mon, 12 Jan 1976 00:00:00 +0530 Sun, 22 Dec 2024 07:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39249 For penalty computation under section 271(1)(a) read with section 271(2) of the Income-tax Act, a registered firm must be treated as an unregistered firm, and the statutory fiction must be carried through to its necessary consequences. The computation therefore requires the tax payable by the firm in the hypothetical character of an unregistered firm, not merely its assessed income as a registered firm. Where the annuity deposit scheme would apply to such an unregistered firm, the corresponding annuity deposit deduction under section 280-O cannot be ignored in working out the penalty base. The penalty is accordingly computed on the balance total income after allowing that deduction. Case-Laws Income Tax Mon, 12 Jan 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39249