Date: Fri, May 11, 2012 at 1:58 PM
Subject: Message from EGroup of SolapurCAs Despite concealment, no s. 271(1)(c) penalty if s. 115JB book profits assessed: Supreme Court
To: editor@itatonline.org
The following important judgement is available for download at itatonline.org.
CIT vs. Nalwa Sons Investment Ltd (Supreme Court)
Despite concealment, no s. 271(1)(c) penalty if s. 115JB book profits assessed
For AY 2001-02, the assessee filed a ROI declaring loss of Rs.43.47 crores under the normal provisions of the Act and book profits of Rs.3.86 crores u/s 115JB. The AO assessed a loss at Rs.36.95 crores as per normal provisions and book profits at Rs.4.01 crores. As there was a reduction in the loss under the normal provisions owing to various additions and disallownaces, the AO levied penalty u/s 271(1)(c) in accordance with with Explanation 4 & Gold Coin 304 ITR 308 (SC). Before the High Court, the assessee argued that even if there was a concealment u/s 271(1)(c) with respect to the normal assessment, the same was not relevant because the assessee's income was assessed u/s 115JB. The High Court accepted the plea and held that as the s. 115JB "book profits" were by a legal fiction deemed to be the "total income", the furnishing of wrong particulars had no effect on "the amount of tax sought to be evaded" as defined in Explanation 4 to s. 271(1)(c). On appeal by the department to the Supreme Court, HELD:
Regards,
Editor,
---------------------
Latest:
No comments:
Post a Comment