THE COMMISSIONER OF INCOME-TAX, WEST BENGAL I,CALCUTTA vs M/S. VEGETABLES PRODUCTS LTD.

The Supreme Court held that under Section 271(1)(a)(i) of the Income Tax Act, 1961, the penalty is to be levied on the tax assessed minus any amount already paid under a provisional assessment. The Court clarified that 'tax payable' refers to the amount specified in a demand notice under Section 156, not merely the assessed tax. The interpretation favoring the assessee was adopted due to the ambiguity in the provision, leading to the dismissal of the Revenue's appeal and upholding the Tribunal's decision.