2007 (3) TMI 181

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....The above tax case appeals are directed against the order of the Tribunal even dated 28.2.2006 made in ITA Nos.822 and 823/Mds/2004 for the assessment years 1997-98 and 2000-2001 respectively, raising the following common substantial questions of law: "(i) Whether in the facts and circumstances of the case, the Tribunal was right in deleting the penalty imposed under Section 271(1)(c) on the gr....

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.... the Act.  On appeals at the instance of the assessee, the Commissioner of Income Tax (Appeals) deleted the penalty and allowed the appeals in favour of the assessee. On appeals, at the instance of the Revenue, the Tribunal held that the disallowance of interest under Section 43B of the Act does not amount to concealment of income and observed that when there is no tax payable then penalty co....

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.... the Act, particularly in the context of the words 'in addition to tax, if any payable by him' employed in sub-clauses (ii) and (iii) would make it clear that the penalty contemplated in all the above clauses is a measure of tax payable by the assessee. In other words, if no tax is payable by the assessee, there would be no penalty which could be levied on the assessee. The penal provisions of sec....