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2017 (2) TMI 591 - ITAT AHMEDABADPenalty u/s 271(1)(c) - not offering correct MAT on the book profit u/s 115JB and non-submission of explanation for claiming expenditure claimed against exempt dividend income and income from house property - Held that:- The assessee has concealed particulars of income by allegedly not calculating MAT u/s 115JB which in the case of assessee was higher than the normal taxes; as the long term capital gain exempted u/s 10(38) of the Act is required to be added in the book profits for the purpose of calculating MAT. Assessee is also guilty for the fact that it was well aware of the provisions of section 115JB of the Act as it has been consistently furnishing details of the same in the previous Asstt. Years wherein normal tax was higher than the MAT but in the year under appeal wherein tax u/s 115JB of the Act was ₹ 1,10,85,350/- as against normal tax of ₹ 25,63,322/-, assessee had not furnished any detail of MAT calculation and also had not filed form 29B statutorily required under the Act to be furnished along with the return of income. We, therefore, uphold the order of ld. CIT(A) confirming the penalty u/s 271(1)(c) of the Act calculated on the tax to be evaded of ₹ 98,79,990/- calculated @ 100% of deemed income u/s 115JB of ₹ 98,79,990/-. - Decided against assessee Disallowance of expenditure made in the computation of assessee’s total income - Held that:- The impugned expenses have already been disallowed and assessee has agreed to pay taxes thereon but certainly assessee should not be visited by penalty u/s 271(1)(c) of the Act. We further observe that penalty is not imposable on this impugned disallowance of expenses because for the year under appeal assessee’s tax liability under MAT is higher than the normal tax liability and even the disallowance of expenses will not affect the overall tax liability and in such situation penalty is not leviable u/s 271(1)(c) of the Act on the disallowed expenses. We, therefore, delete the penalty - Decided against revenue
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