239.            The assistant commissioner issued a show cause notice on 1.4.2017 on the taxable persons demanding:

Tax not levied= 30,000

Interest u/s 50

Penalty =100% of tax or if paid within 30 days then 50% of tax

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

Tax = nil

What shall be the liability of the taxable person? Is he required to pay any penalty thereon. (section 74)

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

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