TMI Blog2015 (5) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... lant has been assessed. Thus the computation of book profit under section 115JB on the part of the appellant was inaccurate. The he case of the appellant is fully covered by clause (A) of the above Explanation-1 to section 271 (1)(c) - Decided against assessee. - ITA NO.6701/Mum/2013 - - - Dated:- 24-4-2015 - Shri Joginder Singh And Shri B.R. Baskaran JJ. For the Appellant : Narayna Atal For the Respondent : Smt. N. V. Nadkarni-DR ORDER Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 23/08/2013 of the ld. First Appellate Authority, Mumbai, confirming penalty of ₹ 6,67,394/- imposed u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter the Act). 2. During hearing of this appeal, the ld. counsel for the assessee, Shri Naryan Atal, challenged imposition as well as confirmation of penalty by contending that neither there is concealment of income nor furnishing of inaccurate particulars of income by the assessee. On the other hand, the ld. DR, Shri, N.V. Nadkarni, defended the imposition as well as confirmation of penalty levied u/s 271(1)(c) of the Act. 2.1. We have considered the rival submissions and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii. The amount of income to which any of the provisions of section 10, 10A or 10B or 11 or 12 apply 1,350 iii. The amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of A/C 17,70,269 9,02,13,870 Book profit /(loss) u/s 115JB 11,41,05,966 8. It is not known as to where-from the above three figures, which have been further reduced from the net profit have come. During the appellate proceedings, no such records have been furnished by the appellant, from which above figures can be deciphered. Further, it is seen that the appellant's P L account as per its audited books of account is as under: INCOME Schedules Rs. lakhs Sales and services -Gross XV 5732.54 Less: Excise Duty 505.95 Sales and services - Net 5226.59 Other income (Note 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or proposed; or f)the amount or amounts of expenditure relatable to any income to which section 10 (other than the provisions contained in clause (38) thereof) or section 11 or section 12 apply; or g) the amount of depreciation, h) the amount of deferred tax and the provision therefore, i)the amount or amounts set aside a provision for diminution in the value of any asset, if any amount referred to in clauses (a) to (i) is debited to the profit and loss account, and as reduced by, - i. the amount withdrawn from any reserve or provisions excluding a reserve created before the 1st day of April, 1997 otherwise than by way of debit to the profit and loss account, if any such amount is credited to the profit and loss account: Provided that . ii. the amount of income to which any of the provisions of section 10 (other than the provisions contained in clause (38) thereof) or section 11 or section 12 apply, if any such amount is credited to the profit and loss account; or ii.a. the amount of depression debited to the profit and loss account (excluding the depreciation on account of revaluation of assets); or iib. the amount withdrawn from revaluation reserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . During the appellate proceedings also, the appellant has not furnished complete facts and figures. Hence, it cannot be' concluded that the appellant had filed complete particulars' of its income during the original assessment proceedings, from which the appellant's correct income could have been computed. Neither any explanations/ clarifications were furnished during the reassessment proceedings. It is only on account of the reopening of the assessment that correct income of the appellant has been assessed. I have already observed above that the computation of book profit under section 115JB on the part of the appellant was inaccurate. The provisions of Explanation-1 to section 271(1)(c) of the Act are as under: Where in respect of any facts material to the computation of total income of any person under this Act - (A) such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or Commissioner (Appeals) or the Commissioner to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 115JB of the Act. There is uncontroverted finding in the impugned order that the assessee did not furnish any record/figures, as has been claimed before us. The assessee while making the computation has not followed the provisions of Explanation-1 to the section, wherein, the adjustment in respect of book profits have been prescribed. The explanation has been already reproduced at page 9 onwards of the impugned order. As mentioned in para- 11, the assessee did not explain/clarify the figures as nobody attended and identically during penalty proceedings. Even before the ld. Commissioner of Income Tax (Appeals) complete facts and figures were not furnished. Only at the time of reopening of reassessment, correct income was assessed. The assessee furnished inaccurate particulars at the original stage and did not furnish any explanation with regard to profits u/s 115JB at any stage either during the original assessment proceedings/reassessment proceedings or during penalty proceedings. In view of these facts, we are in agreement with the ld. Commissioner of Income Tax (Appeals) that the assessee furnished inaccurate particulars of its income and in the absence of reasses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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