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TMI Blog2015 (10) TMI 2714X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 115JB of the Act, we find that the assessee being assessed under section 115JB of the Act, the penalty under section 271(1)(c) of the Act cannot be levied. - Decided in favour of assessee - ITA No.1242/Chd/2012, ITA No.30/Chd/2013 - - - Dated:- 12-10-2015 - BHAVNESH SAINI AND MS. RANO JAIN For the Appellant : Shri Ajay Jain For the Respondent : Shri Manjit Singh, DR ORDER PER RANO JAIN, A.M. : Both the cross appeals are directed against the order of learned Commissioner of Income Tax (Appeals), Chandigarh dated 17.10.2012 for assessment year 2005-06. 2. The order of the learned CIT (Appeals) is against the levy of penalty by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961 (in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay, penalty levied by the Assessing Officer on an addition of ₹ 1,46,62,073/- was cancelled by the learned CIT (Appeals) while penalty on an addition of ₹ 22,17,853/- was confirmed. 5. Now, the assessee has come up in appeal against the confirmation of penalty, while the Department has come up in appeal against the deletion of penalty. 6. While making the arguments before us, our attention was invited by the learned counsel for the assessee to the fact that the tax in this case has been assessed under section 115JB of the Act since there were unabsorbed losses and unabsorbed depreciation related to earlier years. The tax was levied under the provisions of MAT under section 115JB of the Act. In this background, reliance was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al High Court of Punjab Haryana High Court in the case of M/s Vardhman Acrylics Limited (supra) is squarely applicable to the case of the assessee. The Hon'ble Punjab Haryana High Court has relied upon the decision of the Delhi High Court in the case of Nalwa Sons Investments Limited (supra), whereby it has been held as under : Under the scheme of the Income Tax Act, 1961, the total income of the assessee is first computed under the normal provisions of the Act and tax payable on such total income is computed with the prescribed percentage of the book profits computed under section 115JB of the Act. The higher of the two amounts is regarded as total income and tax is payable with reference to such total income. If the tax payab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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