2017 (3) TMI 1186 - SCH - Income Tax

Penalty non leviable u/s 271(1)(c) if the income disclosed in the Return and the income assessed is nil - Held that - This question is covered against the Revenue by decision of this Court in the case of Virtual Soft Systems Ltd. vs. Commissioner of Income Tax Delhi 2007 (2) TMI 147 - SUPREME COURT OF INDIA wherein held that even after addition there is no positive income - penalty is to be set aside. HC order upheld 2006 (7) TMI 696 - GUJARAT HIGH COURT - Decided in favour of assessee

Summary

The Supreme Court upheld the judgment of the High Court of Gujarat stating that no penalty is leviable under Section 271(1)(c) of the Income Tax Act if the income disclosed in the Return and the income assessed is nil. The appeal was dismissed, and no costs were awarded.