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TMI Blog2019 (5) TMI 1677X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified having regard to the ratio of the decision of Mad Data Pvt. Ltd. v. CIT [ 2013 (11) TMI 14 - SUPREME COURT] Hon ble High Court of Delhi in the case of Nalwa Songs Investments Ltd. [ 2010 (8) TMI 40 - DELHI HIGH COURT] is not applicable in the present case, as the penalty is levied with reference to the income assessed u/s. 115-JB of the Act, we do not find any merit in the appeal filed by the assessee. - ITA No. 2384/Chny/2018 - - - Dated:- 10-5-2019 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For The Appellant : Shri S. Parthasarathy, CA For The Respondent : Shri Sridhar Dora, JCIT ORDER PER INTURI RAMA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO, Company Ward- III(1), Chennai (hereinafter called AO ) vide order dated 01.12.2011 passes u/s. 143(3) of the Income Tax Act, 1961 (in short the Act ) at a loss of ₹ 9,18,109/- and book profits under the provision of Act 115-JB of the Act at ₹ 28,69,799/-. It is an admitted fact that the assesseecompany had failed to disclose the book profits u/s. 115-JB of the Act and therefore, the AO issued a show cause notice u/s. 274 r/w. s. 271(1)(c) of the Act on 01.12.2011. In response to the show cause notice, it was submitted that the failure of the assessee to disclose the book profit u/s. 115-JB of the Act is only on account of advertent omission and there was no intention to conceal or furnish inaccurate particulars of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. However, the AO initiated penalty proceedings u/s. 274 r/w. s. 271(1)(c) of the Act for not disclosing the book profits. In response to the show cause notice, the appellant tendered an explanation stating that the book profits were not offered to tax as it entertained belief that the profits which are exempt from tax u/s. 10B of the Act are not liable to be taxed as a book profit even u/s. 115JB of the Act. However, the AO proceeded with levy of penalty. On appeal before ld. CIT(A), the same came to be confirmed. Therefore, the question that arises is whether the explanation offered by the assessee in response to the show cause notice u/s. 271(1)(c) of the Act is a plausible explanation or not. The question of bonafide belief is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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