TMI Blog2011 (3) TMI 1622X X X X Extracts X X X X X X X X Extracts X X X X ..... B on the net Book profit of the company. The Net Book profit of company was ₹ 93,57,899/-. 3. The notice us. 154 was issued to the assessee company on 31.3.2006. The assessee company has not replied for the same. Hence it was assumed that assessee-company has no objection to rectify the assessment. Subsequently, the assessment was rectified u/s. 154 on 1.8.2006, after applying provisions of Sec. 115JB, determining total income at ₹ 93,57,899/-. The case was selected for scrutiny and was completed u/s. 143(3) assessing total income at ₹ 93,57,899/-. The AO held that assessee company has not disclosed its income applying the provisions of Sec. 115JB and thus has furnished inaccurate particulars of income. 4. Order u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e intention of the assessee company to avoid tax on such income. In view of the above facts, it is very clear that assessee has committed an offence within the meaning of Explanation 1 of the provisions of Sec. 271(1)(c) of the I.T. Act, 1961 by filing inaccurate particulars of such income and thus concealed the income. I am therefore satisfied that the assessee company has committed a default attracting the provisions of Sec. 271(1)(c) of the I.T. Act, 1961. I accordingly levy the minimum penalty of ₹ 6,53,653/- for the default committed by the assessee company. 5. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) and reiterated the submissions made before the AO that penalty u/s. 271(1)(c) seeks to levy on concea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case. 9. We heard both the parties. In the present case the assessee failed to declare book profits as per provisions of Sec. 115JB of the I.T. Act in the return of income filed. As per provisions of Sec. 115JB it is obligatory on the part of the assessee to pay taxes on book profits if tax payable on book profit is more than the taxes payable on normal income. The assessee also submitted in the return that the tax payable on book profit is nil. Thus the assessee has furnished inaccurate particulars of income. The plea of the assessee that in such cases no penalty is leviable cannot be accepted because assessee has avoided payment of taxes. The assessee has not given any explanation for not declaring income u/s. 115JB and als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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