TMI Blog2019 (11) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... al 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 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) determining gross total income of ₹ 6,30,34,474/-. In the assessment proceedings, the AO made various additions, out of which one of the addition was unexplained deposits u/s 68 of the Act amounting to ₹ 18,95,000/-. The AO initiated the penalty u/s 271(1)(c) of the act and called for the assessee s explanation as to why the penalty should not be levied in respect of additions made u/s 68 of the Act. Though the AO has given repeated opportunities, the assessee choose not to file the explanation. Therefore, the AO levied the penalty of ₹ 5,68,500/- u/s 271(1)(c) of the Act by an order dated 25.02.2008. 3. The assessee filed rectification petition u/s 154 on 13.04.2012 for cancellation of pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase for levying the penalty. Since, the levy of penalty under the regular provisions is not permissible in the instant case, mistake is apparent from record, thus, submitted that the AO has erred in rejecting the rectification petition, accordingly requested to cancel the penalty levied by the AO. The assessee also drawn our attention to amendment made to section 271(1), Explanation 4(a) vide Finance Act (No.2), 2015 and argued that in the instant case, the amendment is applicable and only after the amendment made applicable, the penalty is leviable. This amendment was applicable from the A.Y.2016-17, hence argued that the AO is not permitted to levy the penalty for the A.Y.2003-04, thus, argued that there was a mistake apparent from the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished has the effect of reducing the loss declared in the return or converting that Loss into income, means the tax that would have been chargeable on the income in respect of which particulars have been concealed or inaccurate particulars have been furished had such income been the total income; (b) In any case to which explanation 3 applies, means the tax on the total income assessed as reduced by the amount of advance tax, tax deducted at source, tux collected at source and self assessment tax paid before the issue of notice under section 148. (c) In by other cased means the difference between ..... X X X X Extracts X X X X X X X X Extracts X X X X
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