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TMI Blog2019 (4) TMI 1616X X X X Extracts X X X X X X X X Extracts X X X X ..... for the year under consideration. Hence respectfully following the aforesaid circular, we hold that no penalty u/s 271(1)( c) of the Act could be made in the facts of the instant case in the hands of the assessee. Since relief is granted to the assessee on this ground, the arguments advanced by the AR on merits of the addition / disallowance need not be gone into and we refrain to give our opinion on the same. - Decided in favour of assessee. - ITA No. 1529/Mum/2018 - - - Dated:- 24-4-2019 - SHRI C. N. PRASAD, JM AND SHRI M. BALAGANESH, AM For The Assessee : Shri Anant N. Pai For The Revenue : Shri D. G. Pansari ORDER PER M . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its main activity of manufacturing and export of gold and diamond jewellery had incurred a loss of ₹ 16,09,699/- which was mainly on account of claim of various expenses. The assessee had set off the said loss against the dividend of ₹ 93,95,586/- received from its foreign subsidiary and offered the balance dividend of ₹ 77,85,887/- to tax @ 15% u/s 115BBD of the Act. The ld AO denied the set off of the loss of ₹ 16,09,699/- against the dividend from foreign subsidiary . However, he allowed the said loss to be carried forward to subsequent assessment years and accordingly brought the entire dividend from foreign subsidiary in the sum of ₹ 93,95,586/- to tax in the assessment. The ld AO initiated penalty proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y placed reliance on the Circular issued by the CBDT vide Circular No. 25/2015 dated 31.12.2015 which is reproduced hereunder for the sake of convenience :- SECTION 115JB, READ WITH SECTIONS 115JA AND 271(1)(c), OF THE INCOME-TAX ACT, 1961 - MINIMUM ALTERNATE TAX - PENALTY UNDER SECTION 271(1)(c) WHEREIN ADDITIONS/DISALLOWANCES MADE UNDER NORMAL PROVISIONS OF THE SAID ACT BUT TAX LEVIED UNDER MAT PROVISIONS UNDER SECTIONS 115JB/115JC, FOR CASES PRIOR TO ASSESSMENT YEAR 2016-17 CIRCULAR NO.25/2015 [F.NO.279/MISC./140/2015/ITJ], DATED 31-12-2015 Section 115JB of the Act is a special provision for levy of Minimum Alternate Tax on Companies, inserted by Finance Act, 2000 with effect f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f MAT u/s 115JB of the Act. The substituted Explanation 4 is applicable prospectively w.e.f. 1-4-2016. 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 115JB of the Act, then penalty under section 271(1)(c) of the Act, is not attracted with reference to additions /disallowances made under normal provisions. It is further clarified that in cases prior to 1-4-2016, if any adjustment is made in the income computed for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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