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TMI Blog2021 (9) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... leaned Commissioner Of Income Tax (A) is bad in law and against the facts and circumstances of the case as neither there is any concealment nor assessee has filed any inaccurate particulars. 2. Because, the leaned Commissioner Of Income Tax (A), grossly erred in sustaining the penalty of Rs. 7,56,000/- imposed u/s 271(1) (C ) of the Act without appreciating-the fact that the lump sum addition is made by applying flat rate that too by admittingly by applying wrong provision in whole disregard of facts on records like better book results and factually there is no specific item/transaction/material which is found wrong/ concealed, hence order is arbitrary. 3. Because, without prejudice to above and in alternative, penalty is without any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncealment or furnishing inaccurate particulars. Therefore, penalty of Rs. 81,900/- imposed u/s 271(1)(c) is prayed to be quashed. 3. Both the appeals are on identical facts, therefore, we are taking up the facts of A.Y. 2010-11. The return of income for Assessment Year 2010-11 was filed on 2.10.2010 declaring loss of Rs, 82,33,103/-. The case was selected for scrutiny. The assessment in this case was completed u/s 143(3) on 25.03.2013 total income at Nil against net loss of Rs. 82,33,203/-. During assessment proceedings, the then Assessing Officer observed that business results furnished by the assessee have not been found to be reliable, books of accounts has not been found to be reliable, and rejected books of account invoking Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n.com 248 (SC) and CIT v. Manjunatha Cotton & Ginning Factory (2013) 359 ITR 565 (Kar). The Ld AR further submitted that the Hon'ble Delhi High Court in case of Pr. CIT Vs. M/s. Sahara India Life Insurance Company Ltd. (ITA No.475/2019 vide order dated 02.08.2019) held that notice issued by the Assessing Officer would be bad in law if it did not specify which limb of Section 271(1)(c) of the penalty proceedings had been initiated. The Ld. AR further submitted that the Assessing Officer made an addition of Rs. 25,20,000/- in the income of the assessee company estimating the income from Truck Operation on the basis of the provisions given u/s 44AE of the Act i.e. @ Rs. 3500 per month per truck. The CIT(A) in quantum appeal observed that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r truck. The CIT(A) in quantum appeal observed that the provisions of Section 44AE are not applicable to the assessee, but confirmed the additions. For not filing the appeal cannot be said that it is concealment of income or furnishing of inaccurate particular of income. In fact, the Assessment Order also did not specify the charge as to whether there is concealment of income or furnishing of inaccurate particulars of income in assessee's case. Thus, there is no particular limb mentioned in the notice issued under Section 271(1)(c) r.w.s. 274 of the Act. This issue is squarely covered by the decision of the Hon'ble Supreme Court in case of M/s SSA' Emerald Meadow. The extract of the decision of the Hon'ble Karnataka High Court in M/s SSA' E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated, therefore, we are of the considered opinion that the penalty levied u/s 271(1)(c) is not sustainable and has to be deleted. Although the Ld. DR submitted that mere non-striking off of the inappropriate words will not invalidate the penalty proceedings, however, the decision of the Hon'ble Karnataka High Court in the case of SSA'S Emerald Meadows (supra) where the SLP filed by the Revenue has been dismissed is directly on the issue contested herein by the Assessee. Further, when the notice is not mentioning the concealment or the furnishing of inaccurate particulars, the ratio laid down by the Hon'ble High Court in case of M/s. Sahara India Life Insurance Company Ltd. (supra) will be applicable in the present case. The Hon'ble Delhi Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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