TMI Blog2007 (3) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 5-3-2007 - Mr. P.D.DINAKARAN and Mrs. CHITRA VENKATARAMAN JJ. JUDGMENT] The Judgment of the court was delivered by P.D.DINAKARAN, J. The above tax case appeals are directed against the order of the Tribunal even dated 28.2.2006 made in ITA Nos.822 and 823/Mds/2004 for the assessment years 1997-98 and 2000-2001 respectively, raising the following common substantial questions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year. The Assessing Officer disallowed the unpaid interest resulting in reduction of loss and also levied penalty invoking Section 271(1)(c) of the Act. On appeals at the instance of the assessee, the Commissioner of Income Tax (Appeals) deleted the penalty and allowed the appeals in favour of the assessee. On appeals, at the instance of the Revenue, the Tribunal held that the disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e only and not a loss. Penalty could be imposed only in addition to the tax payable. A plain reading of clauses (ii) and (iii) in section 271(1)(c) of the Act, particularly in the context of the words 'in addition to tax, if any payable by him' employed in sub-clauses (ii) and (iii) would make it clear that the penalty contemplated in all the above clauses is a measure of tax payable by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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