2012 (11) TMI 431 - SCH - Income Tax

Penalty u/s 271(l)(c) - assessed income is a loss - Held that - As decided in CIT v. Gold Coin Health Food (P.) Ltd. 2008 (8) TMI 5 - SUPREME COURT explanation 4 to Section 271(1)(c) is clarificatory and not substantive & penalty can be levied even if returned income is a loss - in favour of revenue.

Summary

The Supreme Court allowed civil appeals by the Department regarding the cancellation of penalty under section 271(l)(c) of the Income-tax Act, 1961, when the assessed income is a loss. The decision was based on the judgment in CIT v. Gold Coin Health Food (P.) Ltd. [2008] 304 ITR 308.