232.            The Assistant Commissioner issued a show cause notice on 1.4.2017 on the taxable person demanding:

Tax not levied= 30,000

Interest u/s 50

Penalty =100% tax or if paid within 30 days then 10% of tax or 10,000 (whichever is more)

Representations were made & the proper officer re-calculated the tax liability as follows:

Tax = nil

What shall be the liability of thetaxable person? Is he required to pay any penalty thereon. (section 73)

  The taxable person has made representation to the officer along with documents. The officer recalculated the tax liability of the assessee & concluded that there exists no tax liability on the aseessee.

Since no  tax liability exists on the assessee, therefore, the question of levy of any interest & penalty thereon doesnot arise. Thus he is not liable to pay any amount.