(3)The amount of under-reported income shall be,—(i)in a case where income has been assessed for the first time,—(a)if return has been furnished, the difference between the amount of income assessed and the amount of income determined under clause (a) of sub-section (1) of section 143;(b)in a case where no return of income has been furnished or where return has been furnished for the first time under section 148,—(A)the amount of income assessed, in the case of a company, firm or local authority; and(B)the difference between the amount of income assessed and the maximum amount not chargeable to tax, in a case not covered in item (A);(ii)in any other case, the difference between the amount of income reassessed or recomputed and the amount of income assessed, reassessed or recomputed in a preceding order:Provided that where under-reported income arises out of determination of deemed total income in accordance with the provisions of section 115JB or section 115JC, the amount of total under-reported income shall be determined in accordance with the following formula—(A — B) + (C — D)where,A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions);B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of under-reported income;C = the total income assessed as per the provisions contained in section 115JB or section 115JC;D = the total income that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section 115JC been reduced by the amount of under-reported income:Provided further that where the amount of under-reported income on any issue is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D.Explanation.—For the purposes of this section,—(a)"preceding order" means an order immediately preceding the order during the course of which the penalty under sub-section (1) has been initiated;(b)in a case where an assessment or reassessment has the effect of reducing the loss declared in the return or converting that loss into income, the amount of under-reported income shall be the difference between the loss claimed and the income or loss, as the case may be, assessed or reassessed.
