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TMI Blog2018 (9) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... /- which was imposed on disallowance of Registrar of Companies Charges and Deduction u/s 80HHC of the Income Tax Act,1961. 2. That the learned Commissioner of Income Tax (Appeals) has also failed to appreciate that even on the principle of consistency the disallowance made is untenable. 3. That the learned Commissioner of Income Tax (Appeals) has also failed to appreciate that tax has been paid as per provisions of section 115JB of the Income Tax act, in which such additions does not play any role as has been held by the judgment of Hon'ble High Court of Delhi in the case of CIT vs. M/s Nalwa Sons Investment Ltd. 4. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in concluding that merely tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars of its income. 4. Aggrieved by penalty order, the assessee filed appeal before the CIT (A). The CIT (A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that in sustaining the penalty u/s 271(1)(c) of Rs. 2,63,298/- which was imposed on disallowance on ROC charges and deduction u/s 80HHC of the Income Tax Act, 1961 are not proper and just. The Revenue authorities failed to appreciate that tax has already been paid as per provisions of Section 15JB of the Act in which such additions does not play any role as has been held by the Hon'ble Delhi High Court in case of CIT Vs. M/s Nalwa Sons Investment Ltd. (2010) 327 ITR 543. The Ld. AR further submitted that there is no concealment of income or that of furnishing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regarded as total income and tax is payable with reference to such total income. If the tax payable under the normal provisions is higher, such amount is the total income of the assessee, otherwise, 'book profits' are deemed as the total income of the appellant in terms of Section 115JB of the Act. 22. In the present case, the income computed as per the normal procedure was less than the income determined by legal fiction namely 'book profits' under Section 115JB of the Act. On the basis of normal provision, the income was assessed in the negative i.e. at a loss of Rs. 369521018. On the other hand, assessment under Section 115JB of the Act resulted in calculation of profits at Rs. 40163180. 23. In view thereof, in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the normal procedure was, however, not acted upon. On the contrary, it is the deemed income assessed under Section 115JB of the Act which has become the basis of assessment as it was higher of the two. Tax is thus paid on the income assessed under Section 115JB of the Act. Hence, when the computation was made under Section 115JB of the Act, the aforesaid concealment had no role to play and was totally irrelevant. Therefore, the concealment did not lead to tax evasion at all. 26. The upshot of the aforesaid discussion would be to sustain the order of the Tribunal, though on different grounds. Therefore, while we do not agree with the reasoning and approach of the Tribunal, for our reasons disclosed above, we are of the opinion that pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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