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TMI Blog2017 (5) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... as on merits. Since additional grounds are legal in nature and do not require appreciation of new fact, the same are taken on records. As per registry noting, it is noticed that both the appeals have been filed with a delay of 25 days and the assessee, by way of condonation petition, has pleaded for the condonation of the same and attributed the delay to non-availability of directors at relevant time to sign the appeals. Keeping in view the quantum of delay and in the interest of justice, the delay is condoned. 2. First, we take up ITA No. 7371/M/2014 for AY 2003-04 where the assessee is saddled with penalty of Rs. 80,94,048/- which has been confirmed by Ld. CIT(A) vide order dated 28/08/2014. Since legal grounds goes to the root of the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71(1)(c) are initiated on account of addition of Rs. 2,20,24,623/- being the non bonafide loss on account of sales to associate concerns and various parties during the year at unjustifiable prices...................Penalty proceedings u/s 271(1)(c) are initiated'. Whereas in contrast, show cause notice u/s 274 read with section 271(1)(C) mentions the charges as 'have concealed the particulars of your income or furnished inaccurate particulars of such income' without striking-off the relevant words/clause/limb. Finally, the penalty has been imposed by Ld. AO in the penalty order by stating that 'It has been established that the assessee furnished inaccurate particulars of income leading to concealment of income. The assessee has furnished pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Karnataka High Court in CIT Vs. Manjunatha Cotton & Ginning Factory [2013 359 ITR 565] which was later followed by the same court in CIT Vs. SSA's Emerald Meadows [ITA NO. 380 OF 2015 23/11/2015] against which special leave petition [SLP] filed by the revenue before Apex Court in CC No.11485/2016 order dated 05/08/2016 was dismissed by the Hon'ble court, finding no merits in the case. Further, Hon'ble Bombay High Court has followed the ratio of same judgment in CIT Vs. Shri Samson Perinchery [ITA No. 1154 of 2014 order dated 05/01/2017] and further Tribunal, in catena of judgment and more particularly in Wadhwa Estate & Developers Vs. ACIT [ITA N0. 2158/Mum/2016 dated 24/02/2017] has taken the same view following the aforesaid judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the limbs, as per settled legal propositions, are different connotations and carry different meaning. The same also becomes clear from the language of show-cause notice which states that the assessee have concealed the particulars of income or furnished inaccurate particulars of income. Even the show-cause notice did not specify the limb / offence for which the penalty was being initiated. Finally, the penalty has been levied for filing of inaccurate particulars of income leading to concealment of income which shows inconsistent thinking on the part of AO. Undisputedly, the AO was required to specify the exact charge for which the assessee was being penalized which he has failed to do so and the same has resulted into taking away assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantum assessment order dated 30/12/2008, show-cause notice issued u/s 274 dated 30/12/2008 and AO's penalty order dated 28/03/2012 reveals similar non-application of mind by AO as the penalty has been initiated in the quantum assessment for concealment and furnishing of inaccurate particulars whereas the notice u/s 274 do not specify the exact limb for which the penalty was being levied and finally the penalty has been imposed for furnishing of inaccurate particulars of income leading to concealment of income. As we have already decided the issue in favor of assessee on legal grounds on similar facts in AY 2003-04, taking the same stand, we delete the impugned penalty and allow assessee's appeal. Our finding / observation / conclusion in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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