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TMI Blog2014 (6) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... Act even after the concealments were unearthed and accepted by the assessee - the assessee's tax liability did not change despite unearthing of concealed income, no penalty could have been levied - before and after the additions the assessee remained a MAT company and paid tax under section 115JB of the Act or such similar provision, that by itself would mean that no penalty could be imposed - If the effect of the addition of the concealed income results into higher minimum alternative tax by increasing the book profit also, penalty could as well be imposed – Decided against Revenue. - Tax Appeal No. 281 of 2014 - - - Dated:- 5-5-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Appellant : Mrs. Mauna M. Bhatt, Advocate ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is as per form 29B filed along with the return of income and there is no addition in the book profit made by the A.O. Under these facts, now we examine the applicability of the judgment of Hon ble Delhi High Court rendered in the case of CIT vs. Nalva Sons Investment Ltd., (supra) cited by the Ld. A.R. In that case, it was held by Hon ble Delhi High Court that when when computation of income was made u/s.115JB and there was losss under the normal provisions it has to be accepted that such addition in normal income did not lead to tax evasion at all, and therefore, penalty u/s 271(1)(c) cannot be imposed. We have already seen that in the present case also, the facts are identical because in the present case also, the computation of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt are certified by the authorities under the Companies Acts as having been properly maintained in accordance with the Companies Act. The Assessing Officer thereafter has the limited power of making increases and reductions as provided in the Explanation to such provision. 12. To this proposition of the Commissioner, we have serious doubt. In a case like this, when the assessee concealed certain income not only for the purpose of avoiding excise duty, but also income tax, we wonder whether the provisions of section 115JB of the Act would prevent the Revenue Authorities from making suitable additions not only in the normal computation, but also for computing book profit for minimum alternative tax. We also wonder whether the decisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s tax liability did not change despite unearthing of concealed income, no penalty could have been levied. We may clarify that our conclusions should not be seen as laying down, that simply because before and after the additions the assessee remained a MAT company and paid tax under section 115JB of the Act or such similar provision, that by itself would mean that no penalty could be imposed. If the effect of the addition of the concealed income results into higher minimum alternative tax by increasing the book profit also, penalty could as well be imposed. With this clarification, we answer the question against the Revenue. In the result, the Tax Appeal is dismissed. Before closing, we had under our order dated 23.4.2014 called for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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