ACIT Vs. BARODA POWER ELECTRONICS

JUDGEMENT

(1.) AT the time of admission on 6/9/2000, following substantial question of law was formulated by this Court:

(2.) THE Assessment Year in question is 1988-1989. The only controversy is, whether penalty under Section 271 (1) (c) of the Income Tax Act 1961 (the Act) can be levied in case of actually assessed loss, by taking recourse to Explanation 4 to the said section (incorrectly mentioned as sub section (4a) in the question ).

(3.) IT is not in dispute that the controversy now stands concluded by Larger Bench decision of the Apex Court in case of COMMISSIONER OF INCOME-TAX Vs. GOLD COIN HEALTH FOOD P. LTD, (2008) 304 ITR 308, where under, it has been stated that the amendment brought about by Finance Act 2002 is only clarificatory in nature and applies even to Assessment Years prior to 1st April 2003. Applying the ratio of the said decision to the facts of the case, it is held that, Income Tax Appellate Tribunal was not right in deleting penalty of Rs. 4,00,000/- levied under Section 271 (1) (c) of the Act. The question is answered in the negative. Appeal stands allowed in the aforesaid terms, with no order as to costs.