Madras HC confirms penalty u/s 271(1)(c) where Book profit was wrongly computed by Assessee

The Hon’ble Madras HC has confirmed the levy of penalty u/s 271(1)(c) in a case where the assessee made wrong computation of Book Profit. In respect of reduction in Book profit under MAT u/s 115JB on account of loss or depreciation whichever is less, the assessee made computational error. The said error was discovered in assessment and addition was made. Thereafter, penalty u/s 271(1)(c) was also levied. The said penalty was deleted by CIT(A). But the ITAT reversed the order of CIT(A). Now, the Hon’ble Madras HC has confirmed the penalty by approving the order of ITAT.

For complete text of judgement, click hereGokulam Hotels-271-1-c-Mad HC