Levy of Penalty u/s 271(1)(c) if enhancement in assessment is been fully absorbed by brought forward business loss?

The penalty in the instant case stands levied in the sum of Rs.2,41,858/-, i.e., at 100% of the tax sought to be evaded, in view of Explanation (4) to section 271(1)(c). The entire enhancement in assessment having been absorbed against brought forward (unabsorbed) business losses, there was no tax impact of the said enhancement. The same was, however, considered as of no moment by the ld. CIT(A) in view of Explanation (4) to the provision, further relying on the decision inter alia by the hon’ble apex court in the cas

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