sec 271(1)(c)

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vijay kumar vyas (Querist)
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06 September 2009 Total Loss for f.y 2006-07 was Rs.4 lacs.
Assessee has debited Rs.2.40 lacs in f/y 2006-07 towards rent & maintenance relating to f/y 2004-05 & 2005-06 (Rs. 1.20lacs each yr)which it forgot to debit in the relevant f/ys due to mistake. The A.O wants to treat Rs. 2.40 lacs as concealed income and wants to impose penalty u/s 271 (1)(c). Is it imposable. If yes, What is the calculation. If no, any court decision in favour of the assessee.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 September 2009 Yes. Penalty u/s 271(1)(c) attracts.The additions/disallowances made to the loss returned,here Rs.2.40 lakhs being previous year expenses,shall be the concealed income and the amount of tax sought to be evaded shall be the tax that would have ben chargeble on the amount of such additions/disallowances, here Rs.2.40 lakhs,made by the assessing officer. Penalty is 100% to 300% of the tax sought to be evaded.

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