TMI Blog2011 (4) TMI 1406X X X X Extracts X X X X X X X X Extracts X X X X ..... assed u/s.271(1)(c) of the I.T. Act, 1961 dated 28/03/2008 and assessment order passed u/s.153A(b) dated 27/12/2006 were that a return was filed on 24/10/2003 declaring an income of ₹ 2,62,667/- for Assessment Year 2003-04. Thereafter a search U/s.132 of the Act was conducted on 30/11/2004. Consequent thereupon assessee filed a return on 20/09/2005 and therein made a disclosure u/s.153A of ₹ 6,75,000/-. As per Assessing Officer, had the search been not conducted, the said income would not have been disclosed. As per A.O. the disclosure was not considered as a voluntary disclosure on the part of the assessee. Relevant observation of the Assessing Officer is extracted below:- 4. From the above facts it becomes clear that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 6,75,000/-, taxed as per regular computation of income, was less than the tax payable as per section 115JB of the I.T.Act. It has also been mentioned that a quantum addition was already deleted by the Learned CIT(Appeals). Therefore, it was pleaded that the tax levied on the basis of income declared u/s.115JB and not on the basis of income under the normal provisions of the Act. It was also pleaded that the return of income as well as the assessed income both were finally determined as such under the provisions of section 115JB, therefore, there was no incidence of levy of penalty for concealment. In support a cited decision of Jayco India (P) Ltd. reported at 152 Taxman page 14 (Magazine). The Learned CIT(Appeals) has followed the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1961, the total income of the assessee is first computed under the normal provisions of the Act and tax payable on such total income is compared with the prescribed percentage of the book profits computed under section 115JB of the Act. The higher of the two amounts is regarded as total income as tax is payable with reference to such total income. If the tax payable under the normal provisions is higher, such amount is the total income of the assessee, otherwise, the book profits are deemed as the total income of the assessee in terms of section 115JB of the Act. Where the income computed in accordance with the normal procedure is less than the income determined by legal fiction, namely, the book profits under section 115JB of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermined u/s.115JA of the I.T.Act has been answered in favour of the assessee. In addition to the above details, before us, an order dated 21.5.2007 giving effect to the order of CIT(A) s judgement dated 30/04/2007 has been placed according to which in quantum appeal a relief of ₹ 16,77,152/- was granted, hence, leaving behind the net taxable income only at of ₹ 2,62,667/- against which there was brought forward depreciation of ₹ 7,37,850/-, hence, the revised total income remained at NIL. It has also been brought to our notice that while filing the return u/s.153A of the I.T.Act, the book profit u/s.115JA was disclosed at ₹ 16,28,110/- and the tax was accordingly paid. On account of these undisputed information, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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