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2022 (2) TMI 27 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of interest paid on income tax - tax liability of the assessee u/s 115JB - HELD THAT:- As per CBDT Circular No.25/2015 dated 31.12.2015 we find that for the cases prior to A.Y. 2016-17 if taxes are levied under MAT provisions u/s 115JB/115JC of the Act then penalty u/s 271(1)(c) of the Act is not attracted with reference to addition/disallowance made under normal provisions. Examining the facts of the instant case, in light of the above circular we find that the assessee declared loss of ₹ 3,17,87,340/- in the e-return of income filed on 27.09.2012. However, since the assessee’s book profit stood at ₹ 44,84,22,703/- it was liable to pay tax u/s 115JB of the Act and on perusal of the Income Tax Return Acknowledgment and computation of income we find that the assessee paid tax and interest u/s 234B and 234C - Further we find that even after making disallowance in the assessment order u/s 143(3) of the Act there was no impact on the tax liability of the assessee u/s 115JB of the Act. So it remains an undisputed fact that the assessee was liable to pay tax only as per the MAT provisions u/s 115JB of the Act as the normal assessed income was a loss. Under these given facts and circumstances the assessee case is squarely covered by this CBDT Circular No.25/2015 dated 31.12.2015 and no penalty u/s 271(1)(c) of the Act was leviable. We, thus, set aside the finding of Ld. CIT(A) and delete the penalty - Accordingly grounds raised by the assessee are allowed.
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