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TMI Blog2020 (10) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... posed u/s 271(1)(c) of the Income tax Act, 1961 (hereinafter called 'the Act). 2.0 The assessee is a private limited company incorporated on 21.04.2008 and the captioned year is the first year of operations. During the year, the assessee had undertaken trading in garments and has also earned interest income. The assessee company has also undertaken two infrastructure projects which are in the initial stages of implementation. Return declaring Nil income was filed, which was processed u/s 143(1) of the Act and the case was subsequently selected for scrutiny under CASS. During the course of assessment proceedings, the Assessing Officer noticed that the assessee had earned interest income of Rs. 5,91,850/- on FDR with banks and had also debi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of the assessee. Accordingly, an addition of Rs. 49,28,006/- was made u/s 68 of the Act as unexplained income. The assessment was completed at an income of Rs. 55,19,856/- and penalty proceedings under 271(1)(c) of the Act were also initiated. 2.1 The assessee's appeal against the quantum addition was dismissed by the Ld. First Appellate Authority. The assessee carried the matter to This tribunal and Tribunal vide its order dated 24.06.2015 in ITA No.5667/Del/2013 deleted the disallowance on account of interest income but upheld the addition of Rs. 49,28,006/- made u/s 68 of the Act. 2.2 Subsequently, the Assessing Officer imposed penalty of Rs. 15,22,754/- u/s 271(1)(c) of the Act on the addition made towards unexplained income fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.1 The Ld. Authorized Representative submitted that the notice issued u/s 274 of the Act was defective in as much as it did not specify the limb under which the penalty was being initiated i.e., whether the penalty was being proposed to be imposed for concealment of income or for furnishing inaccurate particulars of income. He drew our attention to copy of the said notice dated 29.12.2011 and submitted that in the said notice irrelevant portion has not been crossed out and, therefore, in view of the settled law that no penalty could be imposed if the charge was not specific, the subsequent levy of penalty was bad in law and was liable to be deleted. 4.0 Per contra, the Ld. Sr. Department Representative (DR) opposed the admission of addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aka in the case of CIT vs. Manjunatha Cotton & Ginning Factor, reported in 359 ITR 565 (Kar) has, under identical facts, held as under - "(p) Notice under section 274 of the Act should specifically state the grounds mentioned in Section 271(l)(c), i.e., whether it is for concealment of income or for furnishing of inaccurate particulars of income. (q) Sending printed form where all the ground mentioned in Section 271 are mentioned would not satisfy requirement of law." 5.2 The said above-said judgment of the Hon'ble High Court of Karnataka in the case of CIT vs. Manjunatha Cotton & Ginning Factor (supra) has been followed by the Hon'ble High Court of Karnataka in the case of Commissioner of Income Tax vs. SSA's Emerald Meadows, reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act') to be bad in law as it did not specify which limb of Section 271 (l)(c) of the Act: the penal ty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income The Tribunal, while allowing the appeal of the assessee, has relied on the decision of the Division Bench of this Court rendered, in the case of CIT v. Manjunatha Cotton & Ginning Factory [2013] 359ITR 565/218 Taxman 423/35 taxmann.com 250 (Kar.). 4. In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion, no substantial question of law arises in this appeal for determination by this Court. The appeal is accordingly dismissed. 5.3 Further, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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