13 January 2011
Can penalty be levied u/s 271 (1) c in case earlier loss is disallowed at the time of assessment to the extent of set off taken in next year. Example 2006-07 loss was 15 lacs. setoff was taken against income of 16 lacs in 2007-08. 2006-07 loss now has been disallowed and penalty u/s 271 1 c has been levied. Whether the same is proper Pls give any case laws if possible
CAclubindia
