The Bombay High Court dismissed Income-tax applications filed by the revenue regarding penalty proceedings. The court held that established Apex Court precedent barred such penalty where assessed income was nil or negative.
Applications dismissed with Rule discharged and no costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH : NAGPUR
INCOME-TAX APPLICATION NOs. 87/1996, 105/1996 & 117 OF 1996
Office Notes, Office Memoranda of Coram, appearances, Court's orders or directions and Registrar's orders.
Court's or Judge's orders
CORAM : J.P. DEVADHAR AND B.P. DHARMADHIKARI, JJ. APRIL 24, 2007.
Heard Shri Jaiswal, learned counsel for the applicant.
All these applications filed by the revenue under Section 256(2) of the Incometax Act, 1961, were admitted on the following questions of law :
“1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that no penalty u/s. 271(1)(c) read with explanation 4 thereto is exigible where the assessed income is NIL or negative income ?
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inaccurate particulars ?”
Counsel for the revenue fairly states that the questions raised herein are answered by the decision of the Hon'ble Apex Court in the case of Virtual Soft Systems Limited vs. C.I.T. reported at 289 ITR 83 against the revenue.
In this view of the matter, all these applications are dismissed. Rule discharged. No costs.
JUDGE
JUDGE
*GS.
2 issues framed by the court
Whether the Tribunal was justified in holding that no penalty under Section 271(1)(c) is exigible where assessed income is NIL or negative.
Whether there was no concealment of income or furnishing of inaccurate particulars.
Colour shows how this judgement treated each authority
Virtual Soft Systems Limited vs. C.I.T.Followed¶13
Virtual Soft Systems Limited vs. C.I.T., 289 ITR 83
2 provisions across 1 enactments
Revenue
J.P. Devadhar
B.P. Dharmadhikari
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
