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Penalty under section 271(1)(c) leviable, even if no tax is payable by an assessee
Case Law Details
- Case Name
- JCIT Vs Saheli Leasing & Industries Ltd. (Supreme Court of India)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
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SUPREME COURT OF INDIA,
JCIT Vs Saheli Leasing & Industries Ltd.,
APPEAL NO: Civil Appeal No. 4278/2010,
DECIDED ON May 7, 2010
ORDER
1. Leave granted.
2. The facts of both the appeals being identical, the facts of civil appeal arising out of S.L.P.(C) No.5241 of 2007 are being referred to in this judgement.
3. On a first flush, after bare perusal of the impugned order passed in Revenue Tax Appeal No. 1904 of 2005, decided on 8.8.2006 by Division Bench of the High Court of Gujarat at Ahmedabad, we thought of remanding the matter for a fresh decision on merits, C.As. @ SLP ...
The above ruling regarding chargeability of penalty u/s 271(1)(c) is not good in law. As was held yesteryears by SC that, NO PENALTY COULD BE LEVIED WHERE TAX PAYABLE IS NIL.
Thus, in the above case, where returned income is negative and the assessment results in NIL income, then, no tax effect is involved and consequently, no penalty could be imposed upon the assessee.