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TMI Blog2018 (4) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 2008-09. The assessee has raised following grounds:- "1. That, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred and acted against the principal of natural justice in having passed the ex parte appellate order without affording adequate opportunity of being heard to the appellant and hence the same is liable to be quashed. 2. That, the Ld. CIT(A) further erred in having presumed for alleged noncompliance of notices that the appellant did not appear to be interested in pursuing the appeal, leading to dismissal of all the grounds on the sole foundation that in his appellate order he has upheld the addition of Rs. 9,69,00,702/- as unexplained cash credit, which has resulted in concealment of par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s.271(1)(c) of the Act that there was concealment of particulars of income in spite of the facts that the share transactions were through banking channel and the particulars of income & transactions are part of the audited accounts, which were duly furnished. 7. That, as the order of Ld. CIT(A) on the above issues suffers from illegality and is devoid of any merit, the same should be quashed and your appellant be given such relief as prayed for. 8. That, the appellant craves leave to amend, alter, modify, substitute, add to, abridge and or rescind any or all of the above grounds." Parnashree Banerjee, Ld. Advocate appeared on behalf of assessee and Shri GD. Hangshing Ld. Departmental Representative appeared on behalf of Revenue. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticulars of income. A copy of the show cause notice u/s 274 of the Act was filed which is placed on record and perusal of the same reveals that AO has not struck out the irrelevant portion in the show cause notice. Therefore the show cause notice does not specify the charge against the assessee as to whether the charge is of concealment of particulars of income or furnishing of inaccurate particulars of income. 5. The ld. Counsel for the assessee drew our attention to the decision of the Hon'ble Karnataka High Court in the case of CIT vs. SSA's Emerald Meadows in ITA No.380 of 2015 dated 23.11.2015 wherein the Hon'ble Karnataka High Court following its own decision in the case of CIT vs Manjunatha Cotton and Ginning Factory (2013) 359 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pace as provided in the Notice u/s. 274 of the Act, outlining the type of default, would constitute ground for rejection of satisfaction and levy of penalty u/s. 271(1)(c) of the Act. First, the judgment of Hon'ble jurisdictional High Court in the case of Dr. Syamal Baran Mondal vs. CIT (2011) CTR 631 (Cal) stated that "section 271 nowhere mandates that recording of satisfaction about concealment of assessee's income must be in specific terms and word, satisfaction of AO m9ustd reflect from the order either with expressed words recorded by the AO himself or by his overt act and action.". The ITAT Mumbai Bench in the case of Trishul Enterprises Vs. DCIT (ITA No.384-385/Mum/2014 for AYs 2006-007 & 2007-08) dated 10.02.2017 dismissed the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that service of notice u/s. 274 for initiating penalty proceeding u/s. 271(1)(c) of the Act would constitute valid initiation of penalty proceedings and the case may be decided on merits. He vehemently relied on the order of Authorities Below. 6. We have already observed that the show cause notice issued in the present case u/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealing particulars of income or furnishing inaccurate particulars of income. The show cause notice u/s 274 of the Act does not strike out the inappropriate words. In these circumstances, we are of the view that imposition of penalty cannot be sustained. The plea of the ld. Counsel for the assessee which is based on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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