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Penalty u/s 271 (1)(c) for loss making company

Shaurabh Sahu (FINAL STUDENT) (46 Points)

20 December 2016  

ITO added income resulting in decrease in loss . for example ABC & Co. Filed return of loss of Rs. 7,80,000.00 for AY 2012-13. At the time of assessment procedure, ITO added income (Cash Credit u/s 68) of Rs, 4,00,000.00 and now net loss of Rs. 3,80,000.00 Whether penalty u/s 271(1)(c)  for Cash credit u/s 68 is applicable for loss making company? When the penalty shall be imposed, at the time when  company has set off all losses or in the year of loss???


Please advise..

Thank you in advance

 1 Replies

Nitin Bhuta (Chartered Accountants) (688 Points)
Replied 20 December 2016

Yes penalty is levivable due to addition u/s 68A of the Income Tax Act 1961 as proper explanation must not have been filed in the assessment proceedings thus such addition has been made.

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