Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT RATES :: TDS :: list of goods taxed at 4% :: empanelment :: cpt :: form 3cd :: due date for vat payment :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

No penalty to be levied in absence of any tax liability: SC
February, 10th 2007

The Supreme Court has held that Income Tax department cannot impose any penalty on an assesses in the absence of any positive income and tax liability prior to the amendment by Finance Act 2002.

"Prior to the amendment by the Finance Act 2002, in the absence of any positive income and no tax being levied, penalty for concealment of income cannot be levied," a bench of Justice Ashok Bhan and Justice Dalveer Bhandari said.

According to the court, there was nothing in the language of Section 271(1)(C) as amended by the Finance Act 2002 with effect from April 1, 2003 to suggest that the amendment was retrospective.

The amendment enlarged the scope of the penalty to include even cases where assessment had been completed at loss, it added.

"The same being in the nature of a substantive amendment would be prospective, in the absence of any indication to the contrary," the bench said.

The statute creating the penalty is the first and last consideration and must be construed within the term and language of the particular statute, it added.

With this judgement the apex court has set aside the Delhi High Court order that held that the income tax tribunal was not right in deleting the penalty imposed on virtual soft systems under Section 271(1)(C) merely on the ground that the total income of the assessee was assessed at a minus figure/loss.

The High Court had held that it was not necessary that there must be a positive income and the levy of tax for imposition of penalty under Section 271(1)(C) of the Income Tax Act after April 1, 1976.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions