11 February 2020
Fact: Penalty u/s 271(1)C for A.Y. 2011-12 was imposed in June 2019 and the assesse has filed a valid appeal before the CIT(A). A mistake apparent from record was found in calculating the penalty of 100% of tax avoided and the assesse has filed petition u/s 154/155 for reduction of penalty from Rs. 16,01,084 to Rs. 8,00,542 because the 30% rate was adopted on short term capital gain instead of applicable rate of 15%. The rectification has been done on 10.02.2020 and penalty reduced to Rs. 8,00,542. Question: The penalty which is pending before the CIT(A) has been rectified u/s 154/155 on 10.02.2020 against petition u/s 154/155 dated 03.01.2020. Penalty has been reduced from Rs. 16,01,084 to Rs. 8,00,542. As on 31.01.2020 the disputed penalty amount was Rs. 16,01,084 on which amount i.e. whether Rs. 16,01,084 or Rs. 8,00,542 the 25% amount is payable?
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