TaxTMI 
TaxTMI 
2015 (5) TMI 513
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....penalty by contending that neither there is concealment of income nor furnishing of inaccurate particulars of income by the assessee. On the other hand, the ld. DR, Shri, N.V. Nadkarni, defended the imposition as well as confirmation of penalty levied u/s 271(1)(c) of the Act. 2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is in the business of manufacture of lighting Arrestors and Varistors. The original assessment was completed on 28/12/2006 determining loss at Rs. 88,21,642/- as against the returned loss of Rs. 1,10,55,202/- under the normal provisions of the Act u/s 143(3) of the Act. Since, the book loss declared u/s 115JB of the Act was Rs. 11,4....
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.... declaring the book loss u/s 115JB, the appellant computed the same in the following manner:- Profit/loss as per P& L account before taxation (2,38,92,096/-) Less:- i. The amount withdrawn from reserves or provisions, If any such amount is credited to P & L account 8,84,42,251 ii. The amount of income to which any of the provisions of section 10, 10A or 10B or 11 or 12 apply 1,350 iii. The amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of A/C 17,70,269 9,02,13,870 Book profit /(loss) u/s 115JB 11,41,05,966 8. It is not known as to where-from the above three figures, which have been further r....
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....said section wherein the adjustments in respect of book profits have been prescribed. These adjustments are as under: Explanation-1, - for the purposes of this section, "book: profit" means the net profit as shown in the profit and loss account for the relevant previous year prepared under sub-section (2), as increased bya) the amount of income tax paid or payable, and the provisions therefore; or b)the amounts carried to any reserves, by whatever name called, other than a reserve specified under section 33AC; or c) the amount on amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities; or d) the amount by way of provision for losses of subsidiary companies; or e)the amount or ....
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.... account, Explanation, -.......... iv to vi (omitted) vii. ................. viii. the amount of deferred tax, if any such amount is credited to the profit and loss account. 10. It is seen from the above computation of the profit u/s 115JB that the appellant has not followed the above provisions as per the original return of income filed. As already stated, it is not known as to wherefrom, the figures have been adopted by the appellant in its computation u/s 115JB (as extracted in Para-7 above). Also, it is seen that the starting figure has been wrongly stated as 'Profit/loss as per P&L account before taxation' instead of 'Profit/loss as per P&L account'. Furthermore, it is also seen that the computation is in....
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....he assessment that correct income of the appellant has been assessed. I have already observed above that the computation of book profit under section 115JB on the part of the appellant was inaccurate. The provisions of Explanation-1 to section 271(1)(c) of the Act are as under: Where in respect of any facts material to the computation of total income of any person under this Act - (A) such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or Commissioner (Appeals) or the Commissioner to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and materia....
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.... appellant, where the facts were different. Hence, I am of the view that the AO has correctly levied the penalty under section 271 (1)(c) for concealment of the particulars of income and/or furnishing inaccurate particulars of such income. Same is therefore upheld. 13. The grounds of appeal raised by the appellant are dismissed. 14. In the result, the appeal of the appellant is dismissed." 2.2. If the observation made in the assessment order/penalty order, leading to imposition of penalty, conclusion drawn in the impugned order, material available on record, assertions made by the ld. respective counsel, if kept in juxtaposition and analyzed, we find that at any stage, the assessee did not furnish any explanation and ultimately the....