CIRCULAR OF CBDT ON LOW TAX EFFECT AND EXCEPTIONS. APPLICABILITY ON PENALTY U/S 271(1)(C) OF RS.600000

Additions were made in the Assessment order on account of discrepancies found in stock in trade ,cash in hand etc. The same was confirmed by CIT(A) and also by ITAT Penalty u/s 271(1)(C) of Rs.600000 was levied by A.O. The same was deleted by CIT(A) on the legal ground that the penalty was passed after 6 months from the date of ITAT order. The department has filed appeal against the order of CIT (A) deleting the aforesaid penalty on 2 grounds: 1.The order of ITAT was received in the office of CIT after 3 months from the date of ITAT…

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