Penalty u/s 271 (1)(c) wherein additions/disallowances made under normal provisions of the Income Tax Act, 1961 but tax levied under MAT provisions u/s 115JB/115JC, for cases prior to A.Y. 2016-17

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..... Taxes New Delhi, 31 st December, 2015 Subject: Penalty u/s 271 (1)(c) wherein additions/disallowances made under normal provisions of the Income Tax Act, 1961 but tax levied under MAT provisions u/s 115JB / 115JC , for cases prior to A.Y. 2016-17-reg. Section 115 JB of the Act is a special provision for levy of Minimum Alternate Tax on Companies, inserted by Finance Act 20 .....

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..... ss than the tax payable under the deeming provisions of Section 115JB of the Act , then penalty under section 271(1)(c) of the Act could not be imposed with reference to additions /disallowances made under normal provisions. The judgment has attained finality. 4. Subsequently, the provisions of Explanation 4 to sub-section (1) of section 271 of the Act have been substituted by Fina .....

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..... ns /disallowances made under normal provisions. It is further clarified that in cases prior to 1.4.2016, if any adjustment is made in the income computed for the purpose of MAT, then the levy of penalty u/s 271(1)(c) of the Act , will depend on the nature of adjustment. 6. The above settled position is to he followed in respect of section 115JC of the Act also. 7. Accordingly, the Boa .....

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