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CIT vs. Citi Tiles Ltd.; 278 CTR 245 (Guj):
For the A. Y. 2005-06, the assessee was assessed u/s. 115JB of the Income-tax Act, 1961. There was addition to the normal income but the book profits remained the same. The Assessing Officer imposed penalty u/s. 271(1)(c) for concealment of income. The Tribunal cancelled the penalty.
On appeal by the Revenue, Gujarat High Court upheld the decision of the Tribunal and held as under:
“CIT(A) having not permitted addition in book profits u/s. 115JB even after detection of concealment, there remained no tax sought to be avoided. Hence penalty u/s. 271(1)(c) could not be levied.”
