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2010 (2) TMI 53 - HC - Income TaxPenalty u/s 271(1)(c) – Rectification of an order - Non discloser of income - While completing the assessment for the assessment year 1982-83 in respect of the assessee's production of a Tamil picture titled 'Ananda Ragam', the assessing officer opined that the assessee concealed with the particulars of income and furnished inaccurate particulars of income, particularly the non-disclosure of Rs.3,00,000/- received as royalty resulting in reduction/evasion of tax. Hence a show cause notice read with Section 271(1)(c) of the Act was issued to the assessee. After considering the objections and after giving sufficient opportunity, the assessing officer quantified the penalty in a sum of Rs.2,21,320/- - Tribunal deleted the penalty in an order of rectification - held that - . Once an application seeking for rectification is disposed of, be it the revenue or the assessee, if aggrieved, should have the recourse to the provisions of appeal before this Court and either of them cannot invoke the provisions of Section 254(2) by filing another application for rectification which, in our view, cannot be entertained under that section. We may also observe that on the facts of this case, by the subsequent order of rectification, the original order of the Tribunal itself is sought to be rectified, which resulted in the deletion of the penalty levied under Section 271(1)(c) of the Act. – Order of ITAT deletion of penalty by rectifying its order reversed – decided in favor of revenue.
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