2002 (9) TMI 89

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....This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), is directed against the order, dated April 16, 2001, passed by the Income-tax Appellate Tribunal, Delhi Bench (for short "the Tribunal"), in I. T. A. No. 6733/Delhi of 1995. By the impugned order the Tribunal has dismissed the appeal filed by the assessee against the levy of penalty of Rs. 70,000 under section 273 of....

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....r years against the income assessed under the head "Income from other sources". Since the total income so computed was a positive figure, the Assessing Officer initiated penalty proceedings against the assessee under section 273 of the Act as the assessee had not paid advance tax. After affording an opportunity to the assessee, the Assessing Officer levied a penalty of Rs. 70,000 under the said se....

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....for the parties. In our view, the assessee deserves to succeed in the appeal. As noticed above, the Tribunal has sustained the penalty levied under section 273 of the Act only on the ground that the total income for the relevant assessment year, as computed by the Assessing Officer being Rs. 12,26,394, the assessee was required to pay advance tax. On the contrary, the stand of the assessee was tha....

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.... assessee will not be liable to pay any tax in respect of this year. It is axiomatic that if there is no liability to pay income-tax, there is no obligation to pay advance tax and consequently no occasion for levy of penalty for non-payment of advance tax. In that view of the matter, we feel that it is unnecessary to go into the question as to whether the assessee had failed to furnish a statement....