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2012 (10) TMI 850 - AT - Income TaxPenalty u/s 271(1)(c) - difference in original return and revised return - Held that:- Penalty was imposed due to failure of the assessee to explain the difference in difference in profit figures in the two returns. The explanation before CIT(A) that revised return was without its consent is of no force also the assessee had filed original return and had revised it by lowering the profits and on explanation it could not explain the difference. Thus it can be opined that the assessee took this plea before CIT(A) as it was unable to explain the difference in expenses. Therefore, the assessee was liable to penalty. Though AO had imposed the penalty for a lump sum amount of Rs.5,00,000/-, CIT(A) modified it and directed the AO to calculate the penalty on the basis of tax ought to be evaded. No infirmity in the order of CIT(A) except regarding quantum of penalty which should be calculated on the basis of difference between figures of profits between two profits & loss accounts. Thus direction to AO to calculate penalty accordingly - partly in favour of assessee.
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