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TMI Blog2019 (11) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... the rejection of petition filed by the assessee u/s 154 of the Income Tax Act (in short 'Act') in respect of penalty levied by the Assessing Officer (AO) u/s 271(1)(c) of the Act. The assessee filed the return of income declaring total income of Rs.Nil after set off of brought forward losses for the A.Y.2003-04. The assessee admitted the book profits u/s 115JB at Rs. 4,62,83,557/-. The assessment was completed u/s 143(3) determining gross total income of Rs. 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 Rs. 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l tax or reduce the loss. In the case of the assessee, the company is liable to pay tax on book profits. As per the assessment order, the tax on book profit remained the same and it was more than tax on regular income. Thus, argued that there is no tax that was evaded by the assessee company, hence argued that there is no case 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt vide Finance Bill 2015, penalty was leviable on the concealed particulars of income or on the amount of income relating to which the assessee has furnished the inaccurate particulars. As per Explanation 4, the amount of tax sought to be evaded was as under : (a) In any case where 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, mea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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