Penalty imposed not sustainable if Quantum Assessment itself quashed

ITO Vs Shri Anilkumar G. Darji (ITAT Ahmedabad) Sub-clause (iii) of section 271(1)(c) provides mechanism for quantification of penalty. It contemplates that the assessee would be directed to pay a sum in addition to taxes, if any, payable him, which shall not be less than but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of income and furnishing of inaccurate particulars of income. In other words, the quantification of the penalty is depended upon addition made to the income of the assessee. Since basis for visiting the assessee with penalty ...