TMI Blog2016 (5) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... t December 2015, wherein it has been clarified that in view of the decision of the Hon'ble Delhi High Court in Nalwa Sons Investments Ltd. (2010 (8) TMI 40 - DELHI HIGH COURT) and substitution of explanation 4 to section 271 of the Act, prospectively, if the income tax payable on the total income as computed under the normal provisions of the Act is less than the tax payable on the book profit under section 115JB of the Act, then penalty under section 271(1)(c) is not attracted with reference to additions / disallowance made under normal provisions. - Decided in favour of assessee. - ITA No. 3003/Mum./2014 - - - Dated:- 7-1-2016 - Shri Saktijit Dey, Judicial Member And Shri N. K. Billaiya, Accountant Member For the Petitioner : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stricted the quantum of penalty to 100% of tax on income sought to be evaded which worked out to ` 1,83,987. 4. Learned Counsel for the assessee submitted, as the disallowances on the basis of which penalty was imposed under section 271(1)(c) had no relevance to income determined under section 115JB, penalty under section 271(1)(c) cannot be imposed. For such proposition, he relied upon the following decisions: i) CIT v/s Nalwa Sons Investments Ltd., 327 ITR 543 (Del.); ii) Ruchi Strips and Alloys Ltd. v/s DCIT, ITA no.6940/ Mum./2008 dated 21st January 2011; and iii) BSEL Infrastructures Realty Ltd. v/s ACIT, [2012] 150 TTJ 159. 5. Learned Departmental Representative relied upon the decision of the learned Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T circular referred to above is extracted hereunder: Section 115JB of the Act is a special provision for levy of Minimum Alternate Tax on Companies, inserted by Finance Act 2000 with effect from 1-4-2001. 2. Under clause (iii) of sub-section (1) of section 271 of the Act, penalty for concealment of income or furnishing inaccurate particulars of income is determined based on the 'amount of tax sought to be evaded which has been defined inter-al/a, as the difference between the tax due on the income assessed and the tax which would have been chargeable had such total income been reduced by the amount of concealed income or income in respect of which inaccurate particulars had been filed. 3. In this context, Hon'ble De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .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 be followed in respect of section 115JC of the Act also. 7. Accordingly, the Board hereby directs that no appeals may henceforth be filed on this ground and appeals already filed, if any, on this issue before various Courts/Tribunals may be withdrawn/not pressed upon. This may be brought to the notice of all concerned. 7. In view of the principle laid down by the Hon'ble Delhi High Court in Nalwa Sons Investments Ltd. (supra) and the circular issued by the CBDT as referred to above, we delete the penalty imposed und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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