9911796707
TMI Blog2016 (5) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee company filed its return of income for the impugned assessment year on 29th September 2008, declaring total income at nil under the normal provisions and book profit of ` 1,39,96,811 under section 115JB of the Act. While completing assessment under section 143(3), vide order dated 12th October 2010, the Assessing Officer made certain disallowance under the normal provisions, however, since the tax due on book profit is more than tax due on income declared under normal provisions, the Assessing Officer ultimately completed the assessment under section 115JB. The disallowance made under the normal provisions was not challenged by the assessee. On the basis of disallowances under the normal provisions, the Assessing Officer initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which penalty under section 271(1)(c) was imposed related to determination of income under the normal provisions of the Act. Therefore, they have no relevance at all as far as computation of book profit under section 115JB and levy of tax thereon. Therefore, the decision of the Hon'ble Delhi High Court in Nalwa Sons Investments Ltd. (supra) squarely applies to the facts of the present case. In fact, the issue in dispute has been set at rest by the CBDT circular no.25 of 2015 dated 31st December 2015, wherein it has been clarified that in view of the decision of the Hon'ble Delhi High Court in Nalwa Sons Investments Ltd. (supra) and substitution of explanation 4 to section 271 of the Act, prospectively, if the income tax payable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The judgment has attained finality. 4. Subsequently, the provisions of Explanation 4 to sub-section (1) of section 271 of the Act have been substituted by Finance Act, 2015, which provide for the method of calculating the amount of tax sought to be evaded for situations even where the income determined under the general provisions is less than the income declared for the purpose of MAT u/s 115JB of the Act. The substituted Explanation 4 is applicable prospectively w.e.f. 01.04.2016. 5. Accordingly, in view of the Delhi High Court judgment and substitution of Explanation 4 of section 271 of the Act with prospective effect, it is now a settled position that prior to 1/4/2016, where the income tax payable on the total income as computed un ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
