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TMI Blog2021 (4) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... Emerald Meadows [ 2015 (11) TMI 1620 - KARNATAKA HIGH COURT] confirmed the Order of the Tribunal by dismissing the Departmental Appeal in which the Tribunal has allowed the appeal filed by the assessee holding that notice issued by the A.O. under section 274 read with Section 271(1)(c) of the I.T. Act to be bad in Law and it did not specify under which limb of Section 271(1)(c) of the I.T. Act penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income. The Judgment of the Hon ble Karnataka High Court have been confirmed by the Hon ble Supreme Court [ 2016 (8) TMI 1145 - SC ORDER] Also see M/S. SAHARA INDIA LIFE INSURANCE COMPANY, LTD. [ 2019 (8) TMI 409 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Counsel for the Assessee placed on record copies of the show cause notice for each year issued under section 274 read with section 271(1)(c) of the I.T. Act, 1961, Dated 20.06.2014, before levy of the penalty in which the A.O. has mentioned as under : have concealed the particulars of your income or furnished inaccurate particulars of such income. 3.2. Learned Counsel for the Assessee, therefore, submitted that since the additional ground is legal in nature and arise out of the record and no facts are disputed, therefore, same may be admitted for disposal of the appeal. He has relied upon judgment of the Hon ble Supreme Court in the case of National Thermal Power Co. Ltd., vs., CIT 229 ITR 383 (SC). 4. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars of such income. Thus the A.O. has not mentioned as to for which limb of Section 271(1)(c) of the I.T. Act penalty shall have to be levied against the assessee. According to Section 274 of the I.T. Act, 1961 no order imposing a penalty under this Chapter unless the assessee has been heard or has been given a reasonable opportunity of being heard. The A.O. in order to give an opportunity of being heard to the assessee issued show cause notice Dated 20.06.2014 for all the assessment years. The Hon ble Karnataka High Court in the case of CIT vs. M/s. SSAs Emerald Meadows 73 taxmann.com 241 confirmed the Order of the Tribunal by dismissing the Departmental Appeal in which the Tribunal has allowed the appeal filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.11485 of 2016 by order dated 5th August, 2016. 22. On this issue again this Court is unable to find any error having been committed by the ITAT. No substantial question of law arises. 8.1. Considering the issue in the light of above material it is clear that A.O. has issued invalid and defective notices under section 271(1)(c) of the I.T. Act read with Section 274 of the I.T. Act Dated 20.06.2014 before levy of the penalty. Therefore, entire penalty proceedings are vitiated and are liable to be quashed. In view of the above, we set aside the Orders of the authorities below and delete the entire penalty proceedings under section 271(1)(c) of the I.T. Act for the above assessment years. In view of the above, there is no need to d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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