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TMI Blog2012 (9) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... hi Lal, Sr. D.R. ORDER PER SHAMIM YAHYA: AM This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-VI, New Delhi dated 14.11.2011 pertaining to assessment year 2008-09. 2. The grounds raised read as under:- "1. On the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (A) has erred in deleting the penalty of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.2.2009 declaring an income of ₹ 5,60,53,704/- and book profit at ₹ 32,98,29,062/- u/s. 115JB of the I.T. Act. During the course of assessment proceedings, the Assessing Officer made disallowance of ₹ 11,23,600/- on account of "provision for auditors remuneration payable" u/s. 40(a)(ia) of the Act by observing that the assessee company had deducted tax at source but there was d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany had made the provision for auditor's remuneration payable of an amount of ₹ 11,23,600/- on which no TDS was deducted. Therefore, in view of section 40(a)(ia) of the Act, the Assessing Officer has rightly disallowed the aforesaid expenditure. Assessee has also submitted that the same is disallowable u/s. 40(a)(ia) of the Act. The additions were not challenged by the assessee company. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in appeal before us. 6. We have heard the rival contentions in light of the material produced and precedent relied upon. We find that in this case addition was made on account of disallowance of ₹ 11,23,600/- u/s. 40(a)(ia). However, it is noted that assessee paid the tax, as per the provisions of section 115JB. In these circumstances, we find that decision of the Hon'ble Jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fiction, namely, the book profits under section 115JB of the Act and not under the normal provisions, the tax is paid on the income assessed under section 115JB of the Act. Concealment of income would have no role to play and would not lead to tax evasion. Therefore, penalty cannot be imposed on the basis of disallowance or additions made under the regular provisions. 7. In view of the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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