TaxTMI 
TaxTMI 
2026 (7) TMI 417
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....s appeal has taken following grounds of appeal:- 1. The impugned penalty order u/s 271(1)(c) dated 22-06-2018 as well as notices are bad in law and on facts of the case, also without proper approval and satisfaction of the competent authority, also being barred by limitation, for want of jurisdiction and various other reasons and hence the same may kindly be quashed. 2. Rs. 53,640/-: The ld. CIT(A) has grossly erred in law as well as on the facts of the case in confirming the penalty of Rs. 53,640/- imposed by the ld. AO u/s 271(1)(c) of the Act, also erred in not considering the request and material available on record, also no penalty is leviable in the present case looking to the facts and legal position of law. Hence t....
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....d for filing the accommodation entry of Rs. 3,577/-, and after setting of business losses of the assessee of Rs. 58,529/-, the income of the assessee was assessed at Rs. 1,24,130/-. Since the income assessed was below taxable limit, no tax demand was raised on the assessee, however, the AO levied penalty on the income which was returned by the assessee under the head "income from business and Profession" and was held to be taxable by the AO under the hear "income from other sources" amounting to Rs. 1,78,800/- charging the assessee with having furnished inaccurate particulars of income. Computing the tax concealed on the said income of the assessee at the rate of 100% of the tax sought to be evaded at Rs. 53,640/-, penalty of the said amoun....
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..... Explanation 4.-For the purposes of clause (iii) of this sub-section,- (a) the amount of tax sought to be evaded shall be determined in accordance with the following formula- (A - B)+ (C - D) where, A = amount of tax on the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = amount of tax that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished; C = amount of tax on the total income assessed as per the provisio....
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....n furnished had such income been the total income; (c) where in any case to which Explanation 3 applies, the amount of tax sought to be evaded shall be the tax on the total income assessed as reduced by the amount of advance tax, tax deducted at source, tax collected at source and self-assessment tax paid before the issue of notice under section 148. .......... 9. Clause (a) of Explanation 4 works out tax sought to be evaded on the basis of the tax payable as per the assessed income reduced by the taxes that have been paid by the assessee on the income reduced by the concealed income, that is the tax sought to be evaded is calculated or determined on the basis of the tax, which the assessee would have been liable to pay....