whether penalty leviable u/s 271(1)(c) if ass income is loss

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HITESH KHONA (Querist)

04 September 2009 Dear All,

In the return of income there was loss and during the course of assessment the loss was reduced by disallowing few exp

NOw since the assessed income is also loss

can penalty be levined u/s 271(1)(c)??
If yes or No, plese give me the reply with supporting case law
Regards
Hitesh Khona

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

04 September 2009 Incomeâ€™ includes â€˜lossesâ€™ - When word â€˜incomeâ€™ is read to include losses it becomes crystal clear that even in a case where on account of addition of concealed income returned loss stands reduced and even if final assessed income is a loss, penalty was leviable even during period 1-4-1976 to 1-4-2003; thus amendment made in Explanation 4 to section 271(1)(c)(iii) with effect from 1-4-2003 is clarificaÂtory and, therefore, will have retrospective effect - CIT v. Gold Coin Health Food (P.) Ltd. [2008] 172 Taxman 386/304 ITR 308 (SC).

ALSO SEE EXPLANATION 4

HITESH KHONA

HITESH KHONA (Querist)

04 September 2009 Thanks a Lot

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