1997 (12) TMI 21

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the Appellate Tribunal has referred the following question of law under section 256(2) of the Income-tax Act, 1961, for our consideration. "Whether, on the facts and in the circumstances of the case and having regard to the provisions of section 271(2) of the Income-tax Act, 1961, the Tribunal was right in holding that penalty was not leviable under section 271(1)(a) of the Act on the assessee- .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nal held that since the assessed tax was a negative figure, the tax deducted at source being larger than the tax demanded resulting in refund of Rs. 8,349 the levy of penalty was not justified. The Appellate Tribunal, on the basis of the directions of this court, stated a case and referred the question of law set out earlier. Mr. C. V. Rajan, learned counsel appearing for the Revenue, has fairly .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... case [1980] 122 ITR 312 (Mad), would equally apply to a case where the tax was deducted at source as well. Following the earlier decision of this court in Fomra Brothers' case [1980] 122 ITR 312 we hold that since the tax deducted at source was in excess of the tax determined and calculated, there is no amount on which penalty could be calculated under section 271(1)(a) of the Act and, hence, the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X