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2016 (3) TMI 534 - AT - Income TaxPenalty levied under section 271(1)(c) - assessee paid income tax under section 115JB - Held that:- Since the CBDT vide circular No.25/2015 dated 31.12.2015 has taken a conscious decision not to pursue penalty appeals in respect of the cases, wherein the income was assessed u/s 115JB by following the decision of Hon'ble Delhi High Court Nalwa Sons Investments Ltd [2010 (8) TMI 40 - DELHI HIGH COURT ] we find merit in the contentions of the assessee. Total income is a negative figure under normal provisions of the Act. Hence the income declared by the assessee u/s 115JB of the Act shall remain total income of the assessee. In view of the circular referred above, the penalty u/s 271(1)(c) is not leviable in respect of the additions made while computing the income under the normal provisions of Act. In view of the above, we set aside the order of ld. CIT(A) and direct the AO to delete the penalty levied under section 271(1)(c) for the year under consideration. - Decided in favour of assessee
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