2008 AIR SCW 5841 ::2008 TAX. L. R. 531 ::2008 (9) SCC 622 ::(2008) 11 Scale 492 ::(2009) 3 BankCLR 786 ::(2008) 304 ITR 308 ::AIR 2009 SC (Supp) 780 ::(2008) 70 AllIndCas 206 (SC)

Supreme Court Of India

(From: Gujarat)*

Hon'ble Judge(s): Arijit Pasayat, P. Sathasivam, Aftab Alam , JJJ

Penalty - Concealment of income - Explanation 4 to S.271(1)(c) is clarificatory and not substantive - Hence, be applied retrospectively.2007 (9) SCC 665, Overruled. Income-Tax Act (43 of 1961) , S.271(1)(c) Expln.4— (as amended by Finance Act (2002) and S.119 @page-SCW5842 Explanation 4 to S. 271(1)(c) of Income-tax Act (43 of 1961) (as amended by Finance Act (2002) w. e. f. 1-4-2003) is clarificatory and not substantive and hence be applied retrospectively. Also, the C. B. D. T. Circular No. 204, D/- 24-7-1976 makes the position clear that Explanation 4(a) to Section 271 (1)(c) intended to levy the penalty not only in a case where after addition of concealed income, a loss returned, after assessment becomes positive income but also in a case where addition of concealed income reduces the returned loss and finally the assessed income is also a loss or a minus figure. Therefore, even during the period between 1-4-1976 to 1-4-2003 the position was that the penalty was leviable even in a case where addition of concealed income reduces the returned loss. 2007 (9) SCC 665, Overruled.(Para 10 11 17) Law is well settled that the applicable provision would be the law as it existed on the date of the filing of the return. It is of relevance to note that ....