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2014 (2) TMI 750 - HC - Income TaxPenalty u/s 271(1)(c) of the Act – Applicability of CIT Vs. Prithiipal [2000 (7) TMI 75 - SUPREME Court] – Held that:- The decision in Commissioner Of Income Tax Vs. Gold Coin Health Food Pvt. Ltd. [2008 (8) TMI 5 - SUPREME COURT] followed – Explanation 4(a) to Section 271(1)(c) intended to levy the penalty not only in a case where after addition of concealed income, a loss returned, after assessment becomes positive income but also in a case where addition of concealed income reduces the returned loss and finally the assessed income is also a loss or a minus figure. The circular dated 24.7.1976 clarified that in a case where on setting off the concealed income against any loss incurred by the assessee under any other head of income or brought forward from earlier years, the total income is reduced to a figure lower than the concealed income or even to a minus figure the penalty would be imposable – the Tribunal was not justified in relying on the judgment of CIT Vs. Prithiipal [2000 (7) TMI 75 - SUPREME Court] - The Explanation 4 (a) to Section 271 (1) (c) was calarificatory in nature hence, penalty was rightly imposed by the assessing officer – Decided in favour of Revenue.
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