1973 (7) TMI 25 - HC - Income Tax

Penalty proceedings were taken under section 271(1) of the Act and the penalty amount was computed on the total tax assessed but not on the balance tax payable - Whether penalty under section 271(1) is to be computed on total tax assessed or tax actually payable - held that it should not to be calculated on the total tax assessed

Summary

The High Court of Karnataka ruled in a case involving tax assessment for the year 1966-67. The petitioner challenged the penalty calculation based on tax assessed rather than tax due. The court cited a Supreme Court decision and quashed the Commissioner's order, directing a review based on the correct interpretation. (Case citation: 1973 (7) TMI 25 - KARNATAKA High Court)