Section 271(1)(c) penalty not Leviable on Deletion of Quantum Addition

Eastern Devcon Limited Vs ITO (ITAT Kolkata)  Sub-clause (iii) of section 271(1)(c) provides a method of computation of penalty. According to this sub-clause, a penalty is to be computed either equivalent to the taxes on the additions made to the declared income or three times of taxes on such addition. In the present case, the very addition in the declared income has been deleted by the Tribunal therefore, there is no foundation to compute the penalty upon the assessee. In view of the deletion of the additions in the quantum appeal, no penalty is imposable upon the assessee. FULL TEXT OF THE...