TMI Blog2002 (8) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 271(1)(c)(iii) is imposable even though the assessment for the year has resulted in a net loss and there is no total income assessed for the year and there is no tax payable thereon. The second question referred to us is answered in favour of the assessee, and against the Revenue. - - - - - Dated:- 21-8-2002 - Judge(s) : R. JAYASIMHA BABU., K. P. SIVASUBRAMANIAM. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-Two questions have been referred to us at the instance of the assessee. The first question is common to the assessment years 1972-73 and 1973-74. That question is as to whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in upholding the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as resulted in a net loss and there is no total income assessed for the year and there is no tax payable thereon. There is no dispute about the fact that for this assessment year, the assessee even after the recomputation made by the Inspecting Assistant Commissioner was found to have suffered a loss. No amount was assessed on the assessee as tax for this year. This court in the case of Addl. CIT v. Murugan Timber Depot [1978] 113 ITR 99, after considering sub-clauses (i), (ii) and (iii) in sub-section 271(1)(c) of the Act held that: "A perusal of all the three clauses in section 271(1), namely, clauses (i), (ii) and (iii), will clearly indicate that the penalty contemplated in all the three clauses is a measure of the tax payable by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missed the appeal that had been preferred against the judgment of the Punjab and Haryana High Court. The decision of the Supreme Court is reported as CIT v. Prithipal Singh and Co. [2001] 249 ITR 670. The High Court of Kerala in the case of CIT v. N. Krishnan [1999] 240 ITR 47 has also taken a view similar to that expressed by this court and the Punjab and Haryana High Court. It was observed by that court that: "It is amply clear from a perusal of section 271(1)(c) that penalty could be determined with reference to the amount of tax and unless tax is determined penalty could not be quantified...when penalty cannot be quantified in the absence of determination of tax, it goes without saying that no penalty could be imposed." Learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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