2016 (10) TMI 779

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....the Respondent : Shakeel Ahmad ORDER Heard Sri Praveen Kumar learned standing counsel for the department and Sri Shakeel Ahmad learned counsel for the assessee. This appeal has been filed by the department under section 260A of the Income Tax Act, 1961 for the assessment year 1985-86 against the order of tribunal dated 28.7.2006. Briefly stated the facts of the case are that the assess....

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....the addition of Rs. 32,34,250/- and penalty @ 150% amounting to Rs. 28,01,650/- was levied by the Assessing Officer by passing an order under section 271 (1)(c) of the Income Tax Act, 1961 on 27.6.2000. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeal), Kanpur who vide his order dated 4.12.2000 restricted the penalty to Rs. 18,67,700/- being 100% of tax ....

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....the case of M/s. Zam Zam Tanners Ltd. (2005) vol. 279 ITR 197. While allowing assessee's appeal, the tribunal has relied on the decision of this court in the case of M/s. Zam Zam Tanners Ltd. (supra) wherein it was held that no penalty u/s.271(1)(c of the Income Tax Act is leviable where the assessed income is nil. The tribunal has further held that clause 3 (iii) and Explanation 4 to secti....

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....see filed its return showing nil income and assessment was also made on NIL income? (2) Whether on the facts and in the circumstances of the case, the Hon'ble I.T.A.T. was justified in reducing the quantum of penalty u/s.271(1)(c) of the Income Tax Act, 1961 and restraining the same to Rs. 18,67,780/- as against Rs. 28,01,650/- as imposed by the Assessing Officer without appreciating ....