9911796707
TMI Blog2021 (8) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... assuming jurisdiction as per law and without appreciating the facts and circumstances of the case. 2. That in any case and in any view of the matter action of Ld. CIT(A) in confirming the action of Ld. A.O in imposing penalty of Rs. 51,000/- is bad in law and against the facts and circumstances of the case. 3. Search and seizure operation was carried out at the residential premised of Shri Pradeep Sood on 16/01/2007. Shri Pradeep is a Director of M/s. Ergo Auto Ltd. and is drawing salary from M/s. Vee Gee Industrial Enterprises. A search and seizure operation was also conducted at the business premises of M/s. Vee Gee Industrial Enterprises and Ergo Auto Ltd. on 16/1/2007. Documents inventories as Annexure-A1 to A7 were seized from resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, addition of Rs. 1,70,000/- was made by the AO on account of undisclosed profits on sale of shares which was duly confirmed by the Ld. CIT(A). AO imposed penalty of Rs. 51,000/-. This was duly confirmed on merits by the Ld. CIT(A). Assessee is contending in additional ground of appeal that charge on penalty notice was not specified. In other words, non-striking of one limb in penalty notice does not make it valid penalty proceedings. The appellant has relied upon the decision of the Hon'ble Supreme Court in the case of Commissioner of Income-tax v. SSA'S Emerald Meadows [2016] 73 taxmann.com 248 (SC) and many other decisions. However, this contention of the assessee is not valid as it was clear from page 5 of the assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this matter way back in 1962 in the case of S.V Angidi Chettiar (44 ITR 739 (SC). Through the penalty notice, the AO only informs the assessee that penalty is being initiated against him. The Ld. DR relied upon the decision in the case of Madhusudanan K. P. [2001] 118 taxmann 324 (SC). The Ld. DR further submitted that no prejudice is caused to the assessee by not striking off one limb (whether the penalty is initiated on account of concealment of income or furnishing of inaccurate particulars). The Ld. DR pointed out that no prejudice per se is caused to the assessee merely because one limb of the notice is not struck off by the AO because adequate opportunity would be granted in the proceedings and also the satisfaction about the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lars of income (para 2 & 7). The Tribunal also relied upon the Supreme Court decision in the case of MAK Data. In view of the above case laws, facts of the case and decision of the Hon'ble Supreme Court of India in the case of Sundaram finance Ltd. [2018] 99 taxmann.com 152(SC), thus, the Ld. DR requested that appeal of the assessee may be dismissed. 7. We have heard both the parties and perused the material available on record. First of all, in the notice issued u/s. 274 r.w.s 271(1)(c) of the Income Tax Act, 1961, there was no specific charges as relates to concealment of income or furnishing of inaccurate particulars of income. From the notice dated 04.03.2016 produced by the Ld. AR during the hearing, it can be seen that the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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." Thus, Additional Ground No. (ii) of the assessee's appeal is allowed. Since the inception of the notice issued u/s. 271(1)(c) has become null and void, there is no need to comment on merit of the case. The Penalty u/s. 271(1)(c) of the Act is quashed." Since in the instant case also the inappropriate words in the penalty notice has not been struck off and the notice does not specify as to under which limb of the provisions, the penalty u/s. 271(1)(c) has been initiated, therefore, we are of the considered opinion that the penalty levied u/s. 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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