2016 (3) TMI 534

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng a taxable income of Rs. 26.87 lakhs under normal provisions of Act and book profit of Rs. 135.39 lakhs under the provisions of section 115JB of the Act. Accordingly, the assessee paid income tax under section 115JB of the Act. The AO completed the assessment by determining the total income under the normal provisions of Act on Rs. 55.92 cr. 3. In the appellate proceedings, the assessee got partial relief. However, the assessee also made additional claim for deduction of Rs. 105 crores relating to the liability incurred for guarantee agreement. The said claim was ultimately allowed by the Tribunal, vide its order dated 30.9.2015 passed in ITA No.746/Mum/2005 (AY-2001-02). The ld.AR submitted that the total income of the assessee would ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ade under normal provisions of the Income Tax Act, 1961 but tax levied under MAT provisions u/s 115JB/115JC, for cases prior to A.Y. 2016-17-reg.- 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-alia, 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e under normal provisions. It is further clarified that in cases prior to 1.4.2016, 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be filed on this ground and appeals already filed, if any, on this issue before various Courts/Tribunals may be withdrawn/not pressed upon.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. (Ramanjit Kaur Sethi) DCIT (OSD) (ITJ), CBDT, New Delhi" 7. It is well settled proposition that the circulars issued by the CBDT ....