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Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income When assessee is not liable to pay any tax, no penalty can be levied on assessee [A.Y. 1997-98] As per the language in section 271(1)(c), there could be no case in which penalty could be levied where no tax was 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 the assessee is not liable to pay any tax, no penalty can be levied on the assessee. CASE REVIEW Ramnath Goenka v. CIT [2003] 259 ITR 229 (Mad) followed & relied upon. J. Naresh Kumar for the Appellant. JUDGMENT P.D. Dinakaran, J.-The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal dated October 5, 2006, raising the following substantial questions of law: "(a) Whether, on the facts and circumstances of the case, the Tribunal had properly exercised its discretion and was right in deleting the penalty imposed under section 271(1)(c) ? (b) Whether, on the facts and circumstances of the case, the Tri bunal was right in holding that the Assessing Officer has to prove with evidence that there was a deliberate attempt to conceal income before he could invoke the provisions of section 271(1)(c),…

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