TaxTMI 
TaxTMI 
2011 (7) TMI 1413
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....tax Act, 1961. 2. The brief facts of the case are that the assessee is a limited company engaged in the business of generation of powers and executing Turnkey Project. It has filed its return of income on 29.10.2004 declaring loss of Rs. 2,72,31,272. The assessee has shown the book profit at Rs. 7,03,23,450 and has paid tax under sec. 115JB of the Act. It emerges out from the record that assessee has two divisions, namely, power division and energy division. Power division is eligible for tax holiday under sec. 80IA of the Act. It has shown profits of Rs. 26,04,08,553 under the head "power division". In the energy division, there was a loss of Rs. 2,72,31,272 for the purpose of computing gross total income, assessee has set off this....
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....eported at that point of time but now reported in 327 ITR 543. 4. The learned counsel for the assessee at the very outset submitted that the issue in dispute is squarely covered in favour of the assessee by the decision of Hon'ble Delhi High Court in the case of CIT vs. Nalwa Sons Investments Ltd. as well as by the order of the ITAT passed in the immediately preceding year. In that assessment year under similar circumstances, a penalty of Rs.15,37,642 has been imposed upon the assessee which was deleted by the Learned CIT(Appeals). The ITAT has dismissed the appeal of the revenue bearing ITA No.2524/Del/07. He placed on record copy of the ITAT's order. Learned DR was unable to controvert the contentions of learned counsel for the ass....
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....arged as per the provisions of the Income-tax Act, 1961. penalty proceedings under sec. 271(1)(c) of the Income-tax Act, 1961 have been initiated. Issue necessary forms." The income of the assessee was thus assessed under section 115JB and not under the normal provisions. It is in this context that we have to see and examine the application of Explanation 4. The judgment in the case of Gold Coin [2008] 304 ITR 308, obviously, does not deal with such a situation. What is held by the Supreme Court in that case is that even if in the income-tax return filed by the assessee losses are shown, penalty can still be imposed in a case where on setting off the concealed income against any loss incurred by the assessee under other heads of incom....