Taxable liability

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Suresh Kumawat (Querist)
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05 February 2013 taxable liability in case of expense which are disallowed even though the income from business remains under loss after such dis allowances. ??????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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05 February 2013 The Tax liability may not arise but in case of tax evasion or wrong claims made, penalty may be levied.
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Disallowance made on the discretionary basis by A O are not subject to penalty. Some thing cogent should be brought on the record for invoking penalty.
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Suresh Kumawat

Suresh Kumawat (Querist)
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05 February 2013 Penalty could not be levied where the Total Income of the Assessee is in negative i.e.
loss after the completion of the Assessment Proceedings under the Income-tax Act,
1961. Commissioner of Income Tax vs. Rajasthan Vanaspati Product Limited, (2008) 8
DTR (Raj) 282, were it has been held that, Penalty under section 271(1)
(c)—Concealment—Assessment at loss—Penalty under s. 271(1)(c), prior to amendment
of Explanation 4 thereof by the Finance Act, 2002, w.e.f. 1st, April, 2003, could not be
imposed in cases where, even after adding the concealed income, the assessed income
remained a loss. And concluded that, Penalty under s. 271(1)(c), prior to amendment of
Explanation 4 thereof by the Finance Act, 2002, w.e.f. 1st April, 2003, could not be
imposed in cases where, even after adding the concealed income, the assessed income
remained a loss.

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