9911796707
TMI Blog2002 (8) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... the law for the levy of the penalty is as it stood on the date when the penalty was imposed, that is as amended with effect from April 1, 1976. That question is required to be answered against the assessee, and in favour of the Revenue in the light of the law laid down by the Supreme Court in the case of CIT v. Smt. R. Sharadamma [1996] 219 ITR 671, wherein, the apex court held that the Inspecting Assistant Commissioner does not lose the jurisdiction to continue with the proceedings pending before him on March 31, 1976, by virtue of the deletion of sub-section (2) of section 274 by the Taxation Laws (Amendment) Act, 1975, with effect from April 1, 1976. The court held that: "He was entitled to continue with those proceedings and pass app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be levied on the assessee. As a matter of fact, the language of clauses (i), (ii) and (iii) are such as there could be no case in which penalty could be levied where no tax is payable by the assessee since the quantification of the penalty is totally dependent upon the tax payable by the assessee...Therefore, the conclusion is irresistible that when an assessee is not liable to pay any tax, no penalty can be levied on the said assessee." In the case of CIT v. C.R. Niranjan [1991] 187 ITR 280, this court held that penalty is not exigible on loss. A similar view was taken by the Punjab and Haryana High Court in the case of CIT v. Prithipal Singh and Co. [1990] 183 ITR 69, 71, wherein, the court held that: "Penalty imposed is paid in addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion, has taken a contrary view. The case relied on was the case of CIT v. India Sea Foods [1976] 105 ITR 708. The court in that case construed the term "income" in section 271 as referring to the total income, and not merely the total taxable income of the assessee. Having regard to the law consistently laid (town by this court that penalty is imposable only in cases where tax has been levied, and that no penalty can be levied when the result of the computation made by the Assessing Officer is a loss, and also having regard to the fact that the Supreme Court dismissed the appeal which had been preferred against the judgment of the Punjab and Haryana High Court which had taken a view similar to that taken by this court, it must be held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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