Law:

Section:

Section 271(1)(c), read with section 115JB, of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 2001-02 - Assessee filed its return of income declaring certain loss - While making assessment, Assessing Officer made disallowances on account of PF contribution made belatedly, deduction claimed under section 80HHC and depreciation claimed on machinery purchased on last day of year - However, as income so computed under normal procedure was less than income determined under section 115JB, assessee was assessed under section 115JB - Thereafter, Assessing Officer imposed penalty under section 271(1)(c) in respect of aforesaid three additions holding that assessee had furnished inaccurate particulars of income - Whether, though there was concealment, yet that would have repercussions only when assessment would have been done under normal procedure - Held, yes - Whether when assessment was made on income computed under section 115JB and tax had been paid on income so computed, aforesaid concealment did not lead to tax evasion and, therefore, no penalty could have been imposed on assessee - Held, yes FACTS For the relevant assessment year, the assessee filed its return of income declaring certain loss. While making assessment, the Assessing Officer computed loss at a reduced figure by disallowing PF contribution made belatedly, deduction claimed under section 80HHC and depreciation claimed on machinery which was purchased on the last day of the year. However, as income assessed as per normal procedure was a negative income and less than book profit computed under section 115JB, the assessee was assessed under section 115JB. Thereafter, the Assessing Officer imposed penalty under section 271(1)(c) in respect of the aforesaid three additions, holding that the assessee had furnished inaccurate particulars of the income. On appeal, the Commissioner (Appeals) deleted the penalty. The Tribunal affirmed the order of the Commissioner (Appeals). On the revenue's appeal before the High Court, the assessee put a totally different submission that when the tax was calculated on the deemed income under section 115JB, the revenue could not be allowed to…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492