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TMI Blog2014 (11) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed would become invalid and is liable to be set aside. Therefore, as the notice issued in the instant case initiating penalty proceedings is not in accordance with law, order passed in such proceedings is void - Decided in favour of assessee. - THE HON BLE MR. JUSTICE N.KUMAR AND THE HON BLE MR. JUSTICE B.MANOHAR For the Appellant : SRI A.SHANKAR SRI M.LAVA, ADVS. For the respondent : SRI K.V.ARAVIND, ADV. JUDGMENT Assessee has preferred these appeals against the order of the Tribunal regarding levying penalty on difference of income declared in return under Section 153A and original return. 2. Learned Counsel for the assesee relying upon the judgment of this Court in the case of Commissioner of Income-Tax and another vs. Manjun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e opportunity in rebutting such charge. Hence, it cannot be said that penalty proceedings are invalid because the Assessing Officer has not struck-off the column for which the assessee was not required to give reply. Hence, on this ground, penalty proceedings cannot be cancelled . 3. This Court had an occasion to consider the said question in the aforesaid judgment, has held as under: 59. As the provision stands, the penalty proceedings can be initiated on various ground set out therein. If the order passed by the Authority categorically records a finding regarding the existence of any said grounds mentioned therein and then penalty proceedings is initiated, in the notice to be issued under Section 274, they could conveniently refer to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecific offences, that is to say, concealing particulars of income or furnishing inaccurate particulars of income. No doubt, the facts of some cases may attract both the offences and in some cases there may be overlapping of the two offences but in such cases the initiation of the penalty proceedings also must be for both the offences. But drawing up penalty proceedings for one offence and finding the assessee guilty of another offence or finding him guilty for either the one or the other cannot be sustained in law. It is needless to point out the satisfaction of the existence of the grounds mentioned in Section 271(1)(c) when it is a sine qua non for initiation or proceedings, the penalty proceedings should be confined only to those ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs, no penalty could be imposed on the assessee. Therefore, the entire proceedings initiated would become without jurisdiction. Consequently, the order passed would become invalid and is liable to be set aside. Therefore, as the notice issued in the instant case initiating penalty proceedings is not in accordance with law, order passed in such proceedings is void. The other contentions are left open. Accordingly, the impugned order is liable to be set aside. Hence, we pass the following: ORDER Substantial question of law insofar as notice is concerned is held in favour of the assessee and against the revenue. As we are setting aside the impugned notice, the question of going to the other substantial questions of law would not arise for con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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