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TMI Blog2017 (3) TMI 1539X X X X Extracts X X X X X X X X Extracts X X X X ..... se is bad in law and cannot be sustained. We, therefore, proceed to quash the penalty proceedings as they cannot be sustained under law. - Decided in favour of assessee. - ITA No. 368/RJT/2015 - - - Dated:- 24-3-2017 - S. V. Mehrotra (Accountant Member) And K. Narasimha Chary (Judicial Member) For the Appellant : Written Submission For the Respondent : Usha Shrote, DR ORDER K. Narasimha Chary (Judicial Member) This appeal is filed by the assessee challenging the order dated 25.5.2015 passed by the learned Commissioner of Income Tax (Appeals)-7, Ahmedabad (for short hereinafter referred to as ld. CIT(A) ) in Appeal no. CIT(A)-7/122/15-16. 2. The question involved in this matter is in respect of penalty levied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on this, he argued that when it is clearly and unambiguously stated in the assessment order as well as in the notice that the proceedings are initiated for furnishing inaccurate particulars of income, assessee cannot have the benefit of the judgments relied upon by him. He further submitted that in the penalty order, what is stated is concealment of particulars of income or furnishing of inaccurate particulars of income and both the parameters fall in the same category, as such there was no charge for one limb and penalty for other limb. He prayed to dismiss the appeal. 5. We have carefully perused the material papers on record in the light of the statements made on behalf of the assessee including the judgment relied upon by him in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d legal, the final order imposing penalty would offend principles of natural justice and cannot be sustained. Thus once the proceedings are initiated on one ground, the penalty should also be imposed on the same ground. Where the basis of the initiation of penalty proceedings is not identical with the ground on which the penalty was imposed, the imposition of penalty is not valid. The validity of the order of penalty must be determined with reference to the information, facts and materials in the hands of the authority imposing the penalty at the time the order was passed and further discovery of facts subsequent to the imposition of penalty cannot validate the order of penalty which, when passed, was not sustainable. This was followed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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