- (1.) Heard learned counsel for the appellant.
(2.) The question raised in this appeal is when the assessed income is loss, as a result of reduction at the time of final assessment as against the amount of loss declared in the Income Tax Return, the penalty under Section 271 (1) (c) of the Income Tax Act, 1961 can be levied or not?
(3.) This Court in the case of Commissioner of Income Tax I, Ahmedabad v. Gold Coin Health Food Private Limited reported in 2008 (9) SCC 622 has held that penalty can be levied even if no tax is payable on the total income assessed and the court has analysed the nature of the amendment to come to a conclusion whether it is in reality a clarificatory or declaratory provision.;