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2016 (7) TMI 1623 - ITAT MUMBAIPenalty u/s 271(1)(c) - tax was calculated on the deemed income under section 115JB - As the assessee has tax liability under section 115JB, however, it has offered tax under normal provisions of the Act and, therefore, had furnished inaccurate particulars to evade tax - CIT- A deleted the penalty levy - HELD THAT:- As considering the decision in CIT vs. Nalwa Sons Investments Ltd. at the SLP against the decision was rejected by Hon'ble Apex Court [2012 (5) TMI 150 - SC ORDER] and the facts available on record there is no dispute to the fact that the assessment as per normal procedure was not acted upon and only the deemed income assessed under section 115JB became the basis of assessment as it was higher of the two. In the case of Nalwa Sons Investment Ltd. it was held that when the tax was calculated on the deemed income under section 115JB. the Revenue is not to impose penalty. Since the tax has been paid by the assessee under section 115JB, therefore, not penalty could be levied in respect of additions/disallowances made by the Assessing Officer. Respectfully following the decision M/S. NALWA SONS INVESTMENTS LTD. [2010 (8) TMI 40 - DELHI HIGH COURT] we find no infirmity in the conclusion of the learned CIT(A). Resultantly the appeal filed by the Revenue is dismissed.
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