Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Deputy Commissioner of Income Tax Versus Gujarat Borosil Ltd.

2016 (1) TMI 721 - ITAT AHMEDABAD

Penalty under section 271(1)(c) - adjustments to book profit by AO u/s 115JB - Held that:- The legal position is fairly well settled that when assessment was made on income computed under section 115JB and tax has been paid on income so computed, penalty under section 271(1)(c) cannot be imposed with reference to the additions that would have been made taking into account concealment made by the assessee while making assessment under normal procedure. SEE Commissioner of Income-tax Versus Nalwa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessment year 2005-06. 2. Grievance raised in this appeal is as follows: On the facts and in the circumstances of the case and in law, (i) the learned CIT(A) erred in law in deleting the penalty of ₹ 25,54,890 rightly levied under section 271(1)(c) of the Income Tax Act, in view of the provisions laid down therein; and (ii) the learned CIT(A) erred in not appreciating the fact that the penalty levied is on addition resulting from deliberate misclassification of income with the intention .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(2)(iii) as amended w.e.f. 1st April 1997, the unabsorbed depreciation for earlier years cannot be allowed to be set off against "income from other sources". The stand so taken, to this extent, reached finality. It was in this backdrop that the penalty under section 271(1)(c) was imposed by observing that the Assessing Officer is "satisfied that the assessee has concealed its income to the tune of ₹ 69.82 lakhs and tried to evade its taxable income and thereby avoided the le .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

urt's judgment in the case of CIT Vs Nalwa Investments Ltd (327 ITR 543), and noting that the assessment is completed under section 115JB and the income assessed under regular provisions is less than book profits, learned CIT(A) deleted the penalty. In addition to this reason, learned CIT(A) also noted that it is only a change of head of income, and that, as held by a coordinate bench of this Tribunal, in the case of DCT vs JMD Advisors Pvt Ltd (124 ITD 223) penalty under section 271(1)(c) c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted under section 115JB and tax has been paid on income so computed, penalty under section 271(1)(c) cannot be imposed with reference to the additions that would have been made taking into account concealment made by the assessee while making assessment under normal procedure. That is what was held by Hon'ble Delhi High Court in the case of Nalwa Sons Investment Ltd (supra). The Special Leave Petition filed against this judgment has since been dismissed by Hon'ble Supreme Court on 4th Ma .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

shed inaccurate particulars of such income, he may direct that such person shall pay penalty, which shall not be less than but shall not exceed three times of the amount of tax sought to be avoided by the reasons of the concealment of the particulars of his income or furnishing of inaccurate particulars of such income. Clause (c) of Explanation 4 to section 271(1) of the Act provides that for the purpose of clause 3 of the said sub-section, the expression amount of tax sought to be avoided' .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iculars comes to light, the tax liability before or after such concealment or providing of inaccurate particulars remains the same; by virtue of clause (c) of Explanation 4 to section 271(1) of the Act, there would be no penalty imposable. This is so because the penalty is to be computed in terms of the amount of tax sought to be avoided, such expression amount of tax sought to be avoided' is explained in Explanation 4. We have noticed that clause (c) thereof when applied to such a case, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version