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TMI Blog2013 (10) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessed income is also a loss or a minus figure. Therefore, even during the period between April 1, 1976 and April 1, 2003, the position was that the penalty was leviable even in a case where addition of concealed income reduces the returned loss - The ratio in Gold Coin Health Food P. Ltd., therefore, would leave no scope for us except to hold that penalty under section 271(1)(c) of the Act would be attracted and can be levied even in a case where the assessed income is a loss – Decided in favor of Revenue. - REFERENCE CASE No.176 of 1996 - - - Dated:- 23-11-2011 - RAO V. V. S. AND RAO NALLA B. N., JJ For the Petitioner: Sri S.R. Ashok Senior Standing Counsel ORDER: (Per Hon'ble Sri Justice V.V.S. Rao) The Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmit that even when assessee filed the loss return, the provisions of section 271(1)(c) of the Act are attracted. Relying on section 271(1)(iii) and Explanation 4 thereof, he would submit that the amount of income concealed which has effect of reducing the loss declared in the return or converting the loss into income would also amount to "the amount of tax sought to be evaded". He would further submit that Explanation 4 which was substituted by the Finance Act, 2002, with effect from April 1, 2003, is a clarificatory nature and, therefore, even in the case of an assessee filing a loss return, the provisions of section 271(1)(c) of the Act are attracted. He placed reliance on a Division Bench judgment of the Supreme Court in CIT v. Gold Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat High Court, which having considered the question, "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that penalty under section 271(1)(c) of the Income-tax Act, 1961, cannot be levied if the returned income is loss in the cases prior to the amendment in the year 2002", dismissed the Revenue's appeal holding that when the income disclosed and the income assessed is negative, no case would be made out for attracting the penalty under section 271(1)(c) of the Act. In Virtual Soft Systems Ltd.v. CIT [2007] 289 ITR 83 (SC) ; [2007] 9 SCC 665 a Bench of two judges while rejecting the plea of the Revenue that Explanation 4 to section 271(1), as amended by the Finance Act, 2002, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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