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2016 (5) TMI 614 - AT - Income TaxPenalty under section 271(1)(c) - book profit under section 115JB of the Act as the income declared and tax levied under section 115JB of the Act is more than the income declared under the normal provisions - Held that:- As evident that the disallowances on the basis of which penalty under section 271(1)(c) was imposed related to determination of income under the normal provisions of the Act. Therefore, they have no relevance at all as far as computation of book profit under section 115JB and levy of tax thereon. In fact, the issue in dispute has been set at rest by the CBDT circular no.25 of 2015 dated 31st December 2015, wherein it has been clarified that in view of the decision of the Hon'ble Delhi High Court in Nalwa Sons Investments Ltd. (2010 (8) TMI 40 - DELHI HIGH COURT) and substitution of explanation 4 to section 271 of the Act, prospectively, if the income tax payable on the total income as computed under the normal provisions of the Act is less than the tax payable on the book profit under section 115JB of the Act, then penalty under section 271(1)(c) is not attracted with reference to additions / disallowance made under normal provisions. - Decided in favour of assessee.
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