2016 (7) TMI 1623

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....RDER Per Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 27/05/2015 of Ld. Commissioner of Income Tax, Mumbai deleting penalty under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter the Act) amounting to Rs. 1,63,71,320/- without appreciating that the assessee has tax liability under section 115JB, however, it has offered tax under normal provi....

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....ed u/s. 115JB while filing the return of income appellant had failed to compute tax u/s.115JB. Later CIT revised the assessment u/s.263 and A.O. had levied tax u/s. 115J3 which appellant had paid. However, A.O. had levied penalty u/s.271(1)(c) for not paying the tax u/s. 115JB on the ground that appellant had filed inaccurate particulars of income. Here the issue to be considered is whether the pe....

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....fore, the concealment did not lead to tax evasion at all." The SLP filed against the order was rejected by Hon'ble Supreme Court As reported in 194 Taxman 387. On perusal of the Hon'ble High Court and Supreme Court orders it is clear that penalty cannot be levied u/s. 271(1)(c) if the income is computed u/s. 115JB. Following the above decisions of Hon'ble High Court and Supreme Cour....

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.... under section 115JB and accordingly the assessee paid tax. Later on the learned Assessing Officer levied penalty under section 271(1)(c) of the Act on the basis that the assessee furnished inaccurate particulars of income. 2.3 On appeal before the learned CIT(A) the written submission of the assessee were considered in which broadly the decision in Nalwa Sons Investments Ltd. (supra) was consi....