- (1.) The present appeal has been filed against the judgment and order dated July 27, 2006 passed by the High Court of Gujarat by which the High Court has held that no penalty is leviable under section 271(1)(c) of the Income-tax Act, 1961 if the income disclosed in the return and the income assessed is nil.
(2.) Learned senior counsel appearing for the appellant submitted that this question is covered against the Revenue by decision of this court in the case of Virtual Soft Systems Ltd. v. CIT reported in [2007] 9 SCC 665.
(3.) Respectfully following the aforesaid decision, the judgment and order of the High Court is upheld. The appeal fails and is dismissed.;