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TMI Blog2019 (5) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee against the order dated 24.07.2018 24.07.2018 17.07.2018 passed by CIT(A)-6, Kolkata for AYs 2009-10 to 2011-12 respectively wherein he confirmed the penalty imposed by the AO u/s 271(1)(c) of the Income Tax Act, 1961 (in short Act ). 2. We find the issues raised in these three appeals are similar on identical facts. Therefore, we proceed to hear all the appeals together and pass consolidated order. First we take up ITA No.1753/Kol/2018 ITA No.1753/ KOL /2018 (ASSESSMENT YEAR-2009-10) 3. The ld.AR submits that the issue raised in the appeal is covered by the decision of the Hon ble Supreme Court in the case of SSA s Emerald Meadows. He also submits that the AO imposed penalty on defective notice issued u/s. 274 r.w.s 271(1)(c) of the Act on 19.03.2013, copy of the same is on record of Paper Book and in view of the decision of the Hon ble Supreme Court supra the imposition of penalty on defective is not maintainable. 4. The ld.AR, further submits that the statutory notice dt. 19.03.2013 issued by the ITO, Ward-55(4), Kolkata u/s. 274 r.w.s 271 of the Act is defective and by placing reliance on the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017, has also held that 15. The requirement of Section 274 of the Income Tax Act for granting reasonable opportunity of being heard in the matter cannot be stretched to the extent of framing a specific charge or asking the assessee an explanation in respect of the quantum of penalty proposed to be imposed, as has been urged ..... It further observed that: 16. It is not in dispute that a reasonable opportunity of being heard in the matter, as required by Section 274 of the said Act was given to the assessee before imposing the penalty by the Income Tax Officer. 5. Honble Mumbai E Bench in the case of Earthmoving Equipment Service Corporation vs DCIT 22(2), Mumbai (2017) 84 taxmann.com 51 looked into the issue very closely and opined that after perusing the ratio of the judgement rendered in Manjunatha Coton and Ginning Factory we find that the assessees appeal was allowed by the Honble High Court after considering the multiple factors and not solely on the basis of defect in notice u/s 274. Therefore we are of the opinion that the penalty could not be deleted merely on the basis of defect pointed by the Ld AR in the notice and therefore the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in the case of Dhawal K. Jain vs Income Tax Officer ( ITA NO.996/Mum/2014) order dated 30/09/2016. With these observations, the argument of Id. counsel of the assessee on the legal/technical ground is rejected. Thus, all these four appeals are, therefore, dismissed and the stand of the Ld. Commissioner of Income Tax (Appeal) is affirmed. 8. Therefore, it is submitted that service of notice u/s.274 for initiating penalty proceedings ujs.271(1)(c) of the LT. Act, would constitute valid initiation of penalty proceedings and the case may be heard on merits. 6. In view of above, he prayed to dismiss the appeal of assessee by confirming the order of CIT(A). 7. We have heard the rival submissions and considered the written submissions dt:17-11-2017 and the case laws relied upon by the Ld.DR. We find the same set of written submissions were filed before the Coordinate Bench of this Tribunal in the case of Jeetmal Choraria in ITA 956/KOL/16 for AY 2010-11, wherein the Coordinate Bench elaborately discussed the facts in the decisions as relied upon by the Ld.DR and principle laid down by the respective Hon ble High Courts at Bombay and Patna and preferred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e imprisoned in any straight-jacket formula. For sustaining a complaint of failure of the Principles of natural justice on the ground of absence of opportunity, it has to be established that prejudice is caused to the concerned person by the procedure followed. The issuance of notice is an administrative device for informing the assessee about the proposal to levy penalty in order to enable him to explain as to why it should not be done. Mere mistake in the language used or mere non-striking of the inaccurate portion cannot by itself invalidate the notice. The ITAT Mumbai Bench in the case of Dhanraj Mills Pvt.Ltd. (supra) followed the decision rendered by the Jurisdictional Hon ble Bombay High court in the case of Kaushalya (supra) and chose not to follow decision of Hon ble Karnataka High Court in the case of Manjunatha Cotton Ginning Factory (supra). Reliance was also placed by the ITAT Mumbai in this decision on the decision of Hon ble Patna High court in the case of CIT v. Mithila Motor's (P.) Ltd. [1984] 149 ITR 751 (Patna) wherein it was held that under section 274 of the Income-tax Act, 1961, all that is required is that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th April, 2009. Aggrieved by the said order, the revenue filed appeal before High Court. The Hon ble High Court framed the following question of law in the said appeal viz., 1. Whether the notice issued under Section 271(1)(c) in the printed form without specifically mentioning whether the proceedings are initiated on the ground of concealment of income or on account of furnishing of inaccurate particulars is valid and legal? 2. Whether the proceedings initiated by the Assessing Authority was legal and valid? The Hon ble Karnataka High Court held in the negative and against the revenue on both the questions. Therefore the decision rendered by the ITAT Mumbai in the case of Earthmoving Equipment Service Corporation (supra) is of no assistance to the plea of the revenue before us. 11. In the case of M/S.Maharaj Garage Co. Vs. CIT dated 22.8.2017 referred to in the written note given by the learned DR, which is an unreported decision and a copy of the same was not furnished, the same proposition as was laid down by the Hon ble Bombay High Court in the case of Smt .Kaushalya (supra) appears to have been reiterated, as is evident from the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taka High Court. As far as benches of Tribunal in other jurisdictions are concerned, there are two views on the issue, one in favour of the Assessee rendered by the Hon ble Karnataka High Court in the case of Manjunatha Cotton Ginning (supra) and other of the Hon ble Bombay High Court in the case of Smt .Kaushalya. It is settled legal position that where two views are available on an issue, the view favourable to the Assessee has to be followed. We therefore prefer to follow the view expressed by the Hon ble Karnataka High Court in the case of Manjunatha Cotton Ginning (supra). 15. 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 the decisions referred to in the earlier part of this order has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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