TaxTMI 
TaxTMI 
2016 (10) TMI 779
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 assessment, in this case, was completed under secti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....% 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 sought to be evaded and has allowed a relief of Rs.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 section 271(1)(c) of the Income Tax Act as amended by the Fi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 the fact that the assessee had introduced it own black money amounting ....