9911796707
TMI Blog2022 (1) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... cealment of income or for furnishing of inaccurate particular of income. Since, the AO in the instant case has not struck off the inappropriate words in the notice issued u/s. 274 r.w.s. 271 of the Act dated 29th December, 2016 and the notice does not indicate the proper charge, i.e., under which limb of section 271(1)(c) of the I.T. Act the penalty proceedings have been initiated, therefore we delete penalty levied - Decided in favour of assessee. - ITA No. 2303/Del/2019 - - - Dated:- 23-12-2021 - SHRI R.K. PANDA, ACCOUNTANT MEMBER For the Appellant : K.R. Manjani, Advocate For the Respondents : Om Parkash, Sr. DR ORDER This appeal filed by the assessee is directed against the order dated 7th January, 2019 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1,00,00,000/- v) Addition of undeclared income of FD interest ₹ 1,83,020/- 3. Subsequently, the AO initiated penalty proceedings u/s. 271(1)(c). Rejecting the various explanations given by the assessee, the AO levied penalty of ₹ 10,88,922/- being 100% of the tax sought to be evaded on the addition of ₹ 33,41,000/- added by him on account of unexplained investment and ₹ 1,83,020/- added on account of undeclared interest income. 3.1. In appeal, the ld. CIT(A) confirmed the penalty levied by the AO. 4. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal by raising the following grounds:- On facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also the AO has not mentioned anything regarding the penalty and at the last para of the assessment order, the AO has simply mentioned: penalty proceedings u/s. 271(1)(c), 271B and 271F of the I.T. Act have been initiated separately. He accordingly submitted that in view of the decision of the Hon'ble Delhi High Court in the case of PCIT vs Sahara India Life Insurance Company Ltd. vide ITA No. 426/2019, order dated 02.08.2019 the penalty levied by the AO and sustained by the CIT(A) being not in accordance with the law has to be deleted. 6. So far as the merit of the case is concerned, the ld. Counsel for the assessee submitted that all the details are recorded in the books of account and, therefore, the ld. CIT(A) was not justified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppropriate words have not been struck off and even in the assessment order also there is no specific charge against the assessee for concealment of income or furnishing of inaccurate particulars. Thus, according to the assessee, in absence of any proper charge by the AO in the notice issued u/s. 274 r.w.s. 271(1) of the I.T. Act, the penalty proceedings not being in accordance with the law have to be quashed. 9. I find some force in the arguments of the ld. Counsel for the assessee regarding the validity of the penalty proceedings in the instant case. A perusal of the notice issued u/s.274 r.w.s. 271 of the I.T. Act, 1961 issued by the AO on 29th December, 2016 shows that the inappropriate words in the said notice have not been struck of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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