9911796707
TMI Blog2020 (7) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961 (hereinafter called as 'the Act'). 2.0 The brief facts of the case are that the assessment of this case was completed u/s 143(3) of the Act at an income of Rs. 69,27,614/- after adjusting brought forward losses. At the time of completing the assessment, the following additions were made:- (i) Rs. 1,80,000/- on account of donations. (ii) Rs. 6,96,000/- being alleged difference in investment. (iii) Rs. 47,36,485/- being alleged difference in financial transactions. (iv) Rs. 48,82,192/- on account of disallowance of interest. (v) Rs. 25,80,748/- being disallowance u/s 43(5) of the Income Tax Act. 2.1 On appeal by the assessee, the Ld. CIT (A) deleted all the additions except that of Rs. 48,82,192/- on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erwise wholly misconceived. 3. That furthermore that since no satisfaction was recorded in the order of assessment, penalty levied is otherwise was without jurisdiction. 4. That the learned Commissioner of Income Tax (Appeals) has sustained the penalty by failing to appreciate that assessment proceedings are not conclusive and an alleged incorrect claim does not tantamount to furnishing of inaccurate particulars, when the details supplied by the assessee in return are not found to be incorrect or erroneous or false. 5. That various adverse findings recorded by the learned Commissioner of Income Tax (Appeals) overlook the written submissions and judicial pronouncements relied upon by the appellant. 6. That the learned Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty imposed will not be sustainable in eyes of law as the assessee would not have been made aware of the charge for which the penalty had been initiated. The Ld. AR placed reliance on number of judicial precedent in this regard and submitted that in view of this inherent defect in the notice issued u/s 274, the impugned penalty was liable to be deleted. 4.0 In response, the Ld. SR. DR vehemently argued that the quantum addition had been upheld by the ITAT also and, therefore, it was a fit case for levy of penalty. It was further submitted that a mere technicality like the alleged defect in notice should not be a ground for deletion of penalty when it was obvious from the conduct of the assessee that he had made a incorrect claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent for imposing penalty for breach of civil obligations or liabilities. c) Willful concealment is not an essential ingredient for attracting civil liability. d) Existence of conditions stipulated in Section 271(1)(c) is a sine qua non for initiation of penalty proceedings under Section 271. e) The existence of such conditions should be discernible from the Assessment Order or order of the Appellate Authority or Revisional Authority. f) Ever if there is no specific finding regarding the existence of the conditions mentioned in Section 271(1)(c), at least the facts set out in Explanation 1(A) & (B) it should be discernible from the said order which would by a legal fiction constitute concealment because of deeming provision. g) Eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been disclosed by him, no penalty could be imposed. n) The direction referred to in Explanation IB to Section 271 of the Act should be clear and without any ambiguity. o) If the Assessing Officer has not recorded any satisfaction or has not issued any direction to initiate penalty proceedings, in appeal, if the appellate authority records satisfaction, then the penalty proceedings have to be initiated by the appellate authority and not the Assessing Authority. p) Notice under Section 274 of the Act should specifically state the grounds mentioned in Section 271(1)(c), i.e., whether it is for concealment of income or for furnishing of incorrect particulars of income q) Sending printed form where all the ground mentioned in Section 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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