https://www.taxtmi.com/caselaws?id=794531 Penalty under section 271(1)(c) was not sustainable where the assessed income remained below the taxable limit and no tax was payable, because the statutory basis for computing tax sought to be evaded under Explanation 4 could not operate. The text notes that the case did not involve reduction of loss or conversion of loss into income, so the precondition for penalty was absent. On that footing, the penalty was deleted in favour of the assessee. en-us Tue, 30 Jun 2026 00:00:00 +0530 Tue, 07 Jul 2026 08:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794531 Penalty under section 271(1)(c) was not sustainable where the assessed income remained below the taxable limit and no tax was payable, because the statutory basis for computing tax sought to be evaded under Explanation 4 could not operate. The text notes that the case did not involve reduction of loss or conversion of loss into income, so the precondition for penalty was absent. On that footing, the penalty was deleted in favour of the assessee. Case-Laws Income Tax Tue, 30 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794531