TMI Blog2014 (2) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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. - Income Tax Appeal No. - 457 of 2005 - - - Dated:- 13-2-2014 - Hon'ble Ashok Bhushan And Hon'ble Mahesh Chandra Tripathi,JJ. For the Appellant : Sc, A. N. Mahajan,B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed an appeal. In the appeal, the assessee contended that there being no positive income, the imposition of penalty under section 271(1)(c) was not justified. Reliance was placed on the judgment of Punjab and Haryana High Court in Prithipal Singh and Co. Vs. Commissioner of Income Tax, 183 ITR 69, which decision has been affirmed by the apex Court in 249 ITR 670, Commissioner of Income Tax Vs. Prithipal Singh and Co. The Commissioner Income Tax Appeals allowed the appeal. The Commissioner held that penalty was not imposable in view of the judgment of Punjab and Haryana High Court in 183 ITR 69 as affirmed by the apex Court in Commissioner of Income Tax Vs. Prithipal Singh and Co. 249 ITR 670. The Department filed an appeal before the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o quote the following observations of the apex Court in paragraphs 7,8,9,10,11 and 12: " 7.....Before proceeding further, it will be necessary to focus on the definition of the expression `income' in the statute. Section 2(24) defines `income' which is an inclusive definition, and includes losses i.e. negative profit. The position has been elaborately dealt with by this Court in Commissioner of Income Tax (Central), Delhi v. Harprasad Co. P. Ltd. [1975]99ITR118(SC) . This Court held with reference to the charging provisions of the statute that the expression `income' should be understood to include losses. The expression `profits and gains' refers to positive income whereas losses represent negative profit or in other words minus income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in 1977 (110) ITR 21 (St.) has also substantial relevance. Same reads as follows: New Explanation 4 defines `the amount of tax sought to be evaded'. According to the definition, this expression will ordinarily mean the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of which particulars have been concealed. In a case, however, where on setting off the concealed income against any loss incurred by the assessee under 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 tax sought to be evaded' will mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst 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 because in such a case "the tax sought to be evaded" will be tax chargeable on concealed income as if it is "total income". 12. Law is well settled that the applicable provision would be the law as it existed on the date of the filing of the return. It is of relevance to note that when any loss is returned in any return it need not necessarily be the loss of the concerned previous year. It may also include carried forward loss which is required to be set up against future income under Section 72 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
