Penalty U/s 271(1)(c) Deleted – MAT Liability U/s 115JB Higher Than Normal Tax – No Tax Sought to be Evaded – ITAT Mumbai

PBA Infrastructure Limited Vs DCIT (ITAT Mumbai) Assessee challenged penalty u/s 271(1)(c) levied for A.Y. 2003-04 & 2013-14 where additions/disallowances were made under normal provisions though final tax liability was determined under MAT provisions u/s 115JB. Assessee argued that since MAT liability was higher than normal tax, there was no “tax sought to be evaded”, and therefore penalty provisions were not attracted. Reliance was placed on CIT vs. Nalwa Sons Investment Ltd (SC) and CBDT Circular dated 31-12-2015 clarifying that for years prior to 01-04-2016, penalty cannot be impos...