2011 (3) TMI 1622

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....s per provisions of Sec. 115JB 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 ....

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....at it is a malafide 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 l....