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TMI Blog2019 (2) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... Sh.H.S. Sidhu, Judicial Member And Sh. N. K. Billaiya, Accountant Member For the Appellant : Sh. Janardan Das, Sr. DR For the Respondent : Sh. A. K. Srivastava, CA ORDER PER N. K. BILLAIYA, AM: This appeal by the revenue preferred against the order of the CIT(A)-4, New Delhi dated 15.07.2013 pertaining to A. Y. 2004- 05. 2. The revenue is a aggrieved by the deletion of the penalty of ₹ 31,99,806/- imposed by Assessing Officer u/s 271 (1) (c) of the Act. 3. Briefly stated the facts of the case are that the return was filed on 30.10.2004 which was revised on 31.03.2005. The assessment was completed on 31.11.2006 u/s 143(3) of the Act on total income of ₹ 11,28,40,516/-. The computation of MAT on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 244. 10. Per contra the Counsel for the assessee stated that the assessee has been assessed on MAT as per the provision of the section 115 JB of the Act and therefore, it is not a fit case for levy of penalty u/s. 271(1) (c) of the Act. 11. We have carefully considered the orders of the authorities below. It is not in dispute that the original assessment as well as reassessment has been computed at nil income and the tax paid by the assessee is on book profit u/s 115 JB of the Act. In our considered opinion the facts of the case in hand clearly show that this is not a fit case for levy of penalty u/s 271 (1) (c) of the Act. In the light of the following circular of CBDT :- Subject: Penalty u/s 271(1)(c) wherein additions/disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide for the method of calculating the amount of tax sought to be evaded for situation-, even where the income determined under the general provisions is less than the income declared tor the purpose of MAT u/s i I 5.IB of the Act. I he substituted Explanation 4 is applicable prospective!} vv.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 under the normal provisions of the Act is less than the tax payable on the book profits u/s I 15.1 B of the Act, then penalty under 271 (I) (c) of the Act. is not attrac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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