https://www.taxtmi.com/caselaws?id=776185 The ITAT Visakhapatnam held that penalty under section 271(1)(c) cannot be sustained where the primary addition of capital gains was deleted, resulting in no tax liability. The assessee, who initially failed to file a return under section 139(1) but filed under section 148, was found to have no taxable capital gains after the AO and CIT(A) applied section 50C and allowed pre-indexed cost adjustments, resulting in a capital loss. Since no concealment of income or escapement of tax was established, the penalty was quashed. The tribunal relied on the Supreme Court ruling in K.C. Builders and Delhi HC decision in SAS Pharmaceuticals to affirm that penalty cannot survive when the underlying addition is deleted. The assessee's appeal was allowed. en-us Fri, 18 Jul 2025 00:00:00 +0530 Tue, 05 Aug 2025 16:26:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776185 The ITAT Visakhapatnam held that penalty under section 271(1)(c) cannot be sustained where the primary addition of capital gains was deleted, resulting in no tax liability. The assessee, who initially failed to file a return under section 139(1) but filed under section 148, was found to have no taxable capital gains after the AO and CIT(A) applied section 50C and allowed pre-indexed cost adjustments, resulting in a capital loss. Since no concealment of income or escapement of tax was established, the penalty was quashed. The tribunal relied on the Supreme Court ruling in K.C. Builders and Delhi HC decision in SAS Pharmaceuticals to affirm that penalty cannot survive when the underlying addition is deleted. The assessee's appeal was allowed. Case-Laws Income Tax Fri, 18 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776185