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2014 (5) TMI 400 - HC - Income TaxDeletion of penalty u/s 271(1)(c) of the Act – Computation u/s 115JB of the Act – Concealment of particulars – Held that:- Tribunal was of the view that Concealment Assessment u/s 115JB loss under normal provisions Assessee's income computed as per the normal procedure was less than the income determined by legal fiction namely, book profit u/s 115JB and thus income was assessed u/s 115JB and not under the normal provisions - Though there was concealment, it had repercussion only when assessment was made under the normal procedure - Assessment as per the normal procedure was not acted upon - It is the deemed income u/s 115JB which has become the basis of the assessment - tax was paid on the income assessed u/s 115JB - the concealment did not lead to tax evasion at all penalty u/s 271(1)(c) could not be imposed in respect of the false claim of depreciation. The assessee would pay before and after additions would remain exactly the same - the Commissioner did not permit any increase in the assessee's book profit computation u/s 115JB of the Act, even after unearthing the concealed income, the assessee ended up paying the same amount of minimum alternative tax u/s 115JB of the Act even after the concealments were unearthed and accepted by the assessee - the implication of Explanation 4 to section 271(1) of the Act must be seen - the assessee's tax liability did not change despite unearthing of concealed income, no penalty could have been levied - simply because before and after the additions the assessee remained a MAT company and paid tax u/s 115JB of the Act or such similar provision, that by itself would mean that no penalty could be imposed - If the effect of the addition of the concealed income results into higher minimum alternative tax by increasing the book profit also, penalty could as well be imposed – Decided against Revenue.
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