2022 (2) TMI 27

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....ted 14.03.2017 framed by DCIT-1(1), Indore. The assessee has raised following grounds of appeal: 1. That the learned Commissioner of Income tax (Appeals) has erred in confirming the penalty levied under section 271 (1)( c ) of the Income Tax Act without appreciating that in penalty notice issued under section 271(1)(c) a specific finding in respect of levy of penalty has not been mentioned and it is simply stated that "have concealed the particulars of your income or furnished inaccurate particulars of such income." And therefore the levy of penalty is unlawful and penalty order passed need to be quashed. 02.'1'hat the learned Commissioner or Income Tax (Appeals) has erred in confirming the penalty levied under ....

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....d for scrutiny and assessment u/s 143(3) of the Act completed on 30.03.2015 wherein after making addition u/s 14A of Rs. 61,43,940/- and disallowance on account of interest paid on income tax at Rs. 15,82,154/-, loss assessed at Rs. 2,40,10,830/-. However since the book profit was Rs. 44,84,22,703/-, assessee was liable to pay tax u/s 115JB of the Act on the book profit and the same remained unchanged. Ld. AO initiated the penalty proceedings u/s 271(1)(c) of the Act on the disallowance/addition made in the assessment order. Subsequently, penalty proceedings were completed vide order dated 14.03.2017 and penalty of Rs. 5,23,000/- was levied on the disallowance of interest paid on income tax. 3. Aggrieved assessee preferred an appeal befo....

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.... Subject: Penalty u/s 271(1)(c) wherein additions/disallowances made under normal provisions of the Income Tax Act, 1961 but tax levied under MAT provisions u/s H5JB/ii5JC,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 suc....

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....then penalty under 27i(i)(c) of the Act, is not attracted with reference to additions /disallowances made 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 27i(i)(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. 8. From perusal of ....