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2019 (11) TMI 1007 - AT - Income TaxRectification of mistake - Penalty u/s 271(1)(c) - Addition u/s 68 - Rectification petition u/s 154 by assessee for cancellation of penalty levied u/s 271(1)(c) stating that there is no sanction in the act for levy of penalty as per normal provisions, when the assessee paid the tax u/s 115JB - HELD THAT:- From plain reading of section 271(1)(c), before amendment, the words used are the concealed income or the income relating to which the assessee has furnished the inaccurate particulars. In the Finance Act, it was mentioned that where concealment of income was computed under the general provisions have taken place, penalty under 271(1)(c) should be leviable even if the tax liability of the assessee for the year has been determined under the provisions of section 115JB or 115JC of the Act. There were diverging decisions with regard to levy of penalty u/s 271(1)(c) prior to the amendment. As per the pre amended provisions, the concealment of income generally referred to the general provisions of the Act, since, 115JB is always referred to as book profits and the tax paid under the scheme of 115JB is given credit in regular taxes. From the plain reading of the penalty order, there is no mistake which is visible from the order. The issue with regard to amendment made vide Finance Act, 2015 has no application in the assessee’s case. Since the concealment of income referred to in 271(1)(c) of the Act is in respect of tax sought to be evaded is defined in Explanation 4 w.r.t. the income and the potential tax effect, the issue is required to be debated by long drawn process to decide the issue and cannot be adjudicated u/s 154 of the Act. No infirmity in the order of the Ld.CIT(A) and the same is upheld. The appeal of the assessee is dismissed.
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