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2019 (5) TMI 1324 - AT - Income TaxPenalty u/s 271(1)(c) - tax liability of the assessee is ultimately computed on the book profit under section 115JB - whether penalty imposed u/s 271(1)(c) on the basis of disallowance made under the normal provisions of the Act would survive? - HELD THAT:- On the basis of additions/disallowances made under the normal provisions of the Act, AO imposed penalty u/s 271(1)(c). However, while giving effect to the order passed by the Commissioner (Appeals), AO in his order dated 26th July 2017, a copy of which is placed before us by the AR has computed the total loss of the assessee under the normal provisions of the Act at ₹ 74,77,297, and has ultimately computed the tax liability of the assessee on the book profit determined under section 115JB. If we examine the legal position, it can be seen that the Hon'ble Delhi High Court in CIT v/s Nalwa Sons Investment Ltd. [2010 (8) TMI 40 - DELHI HIGH COURT] has held that when the income of the assessee is computed u/s 115JB of the Act, penalty under section 271(1)(c) of the Act on the basis of additions / disallowances made under the normal provisions of the Act would not survive. - Decided in favour of assessee.
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