2019 (7) TMI 297

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.... 'the Act' for short]. 3. We find that the first appellate authority has dismissed the appeal in limine which means that the facts of the case have not been properly appreciated by the ld. CIT(A). 4. The facts on record show that the assessment was framed u/s 143(3) of the Act vide order dated 13.12.2010. Income of the assessee was computed as under: Income under the head "Business & Profession"     Net Profit as per profit and loss account   1152349276 Add: (added by assessee himself)       Provision for leave encashment 500182     Prior period expenses 218273     ROC Fees 1002000     Intt. On TDS 4201     Depreciation as per Co....

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....sue, necessary forms after allowing credit for prepaid taxes if any. Charge interest u/s 234A, 234B. 234C & 234D as per law. - Penalty proceedings u/s 271(l){c) have been initiated separately." 5. Penalty proceedings u/s 271(1)(c) of the Act were initiated on the additions made while computing the income under normal provisions of the Act. It can be seen from the computation of income, as per the assessment order exhibited above, that the tax liability of the assessee is computed u/s 115JB of the Act. 6. Against the quantum addition, the assessee preferred an appeal before the ld. CIT(A) who gave part relief to the assessee and penalty has been levied on the addition sustained by the ld. CIT(A). 7. We are of the considered view that in s....

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....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 which inaccurate particulars had been filed. 3. In this context, Hon'ble Delhi High Court in its judgment dated 26.8.2010 in ITA No.1420 of 2009 in the case of Nalwa Sons Investment Ltd. (available in NJRS as 2010- LL-0826-2), held that when the tax payable on income computed under normal procedure is less than the tax payable under the deeming provisions of Section 115JB of the Act, then penalty under section 27i(i)(c) of the Act could not be impose....