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TMI Blog2021 (3) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... invalid and bad in Law and as such the entire proceedings are vitiated and no penalty is leviable against the assessee - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee : Dr. Rakesh Gupta, And Shri Somil Aggarwal, Advocates For Revenue : Smt. Rinku Singh, Sr. D.R. Date of Hearing : 29.04.2019 Date of Pronouncement : 29.04.2019 ORDER PER BHAVNESH SAINI, J.M. This appeal by Assessee has been directed against the Order of the Ld. CIT(A), Ghaziabad, Dated 29.06.2015, for the A.Y. 2008-2009, challenging the levy of penalty under section 271(1)(c) of the I.T. Act, 1961. 2. In this case, the assessee filed return of income declaring loss of ₹ 5.75 crores. The A.O. noted that provision for bad debt of ₹ 1,01,81,411/- was debited to P & L account. The A.O. noted that such provision is not allowable unless it is ascertained liability. The A.O. accordingly made addition of the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in 73 taxmann.com 248. 4. On the other hand, Ld. D.R. relied upon the Orders of the authorities below. 5. After considering the rival submissions, we are of the view that penalty is not leviable in the matter. The A.O. issued show cause notice dated 27th December, 2010 before levy of the penalty against the assessee. However, the A.O. in its show cause notice failed to specify in which limb of Section 271(1)(c) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income, as rightly pointed-out by the Learned Counsel for the Assessee. The entire penalty proceedings are, therefore, vitiated and no penalty is leviable. On this score itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, submitted that penalty order may be set aside and penalty order may be cancelled in both the appeals. 4. On the other hand, Ld. D.R. relied upon the Orders of the authorities below. 5. After considering the rival submissions, we are of the view that the issue is covered by the Order of ITAT, Delhi Bench in the case of M/s. Bharat Immunological & Biological Corporation Ltd., Bulandshahr vs., The DCIT, Circle, Bulandshahr (supra) and Judgment of Hon'ble Delhi High Court also in the case of Pr. CIT vs., M/s. Sahara India Life Insurance Company Ltd., (supra). It is not in dispute that in both the appeals the A.O. has issued an identical show cause notice Dated 10.12.2010 mentioning the fact as reproduced above in which A.O. has not pointe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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