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TMI Blog2022 (4) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... t"] in appeal [CIT(A)-38/ACIT-26(2)/IT-10070/2017-18] for the Assessment Year 2014-15, whereby the CIT(A) had dismissed the appeal filed by the Assessee against the order, dated 26.12.2016, passed under Section 271(1)(c) of the Act levying penalty of INR 2,90,287/-. 2. The Appellant has raised the following grounds of appeal: "1.1 The learned Commissioner of Income Tax (Appeals)-38 Mumbai ["the ld. CIT(A)"] erred in confirming the penalty of Rs. 2,90,287/- levied by the Assessing Officer ("the A.O.") under section 271(1)(c) of the Income Tax Act, 1961. 1.2 While doing so, the ld. CIT(A) failed to appreciate that: a. the A.O. passed the penalty order under section 271(1)(c) of the Act without affording sufficient, proper and adequate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. In the penalty proceedings, the explanation provided by the Appellant was rejected by the AO and a penalty of INR 2,90,287/- was levied under Section 271(1)(c) of the Act. The aforesaid penalty was confirmed by the CIT(A) by the order impugned in the present appeal. 5. Before us, the Ld. Authorized Representative of the Appellant submitted that the Appellant had made relevant disclosure in the return of income. Since the claim for deduction of expenses under Section 57 was on account of bonafide belief, this was not a fit case for levying penalty. He further submitted that, in any case, the issue in the present appeal is covered in favour of the Appellant by the judgment of the Hon"ble Bombay High Court in the case of Mohd. Farhan A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proceedings to draw strength from each other. Nor can each cure the other's defect. A penalty proceeding is a corollary; nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds of the penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vagueness." (Emphasis supplied) 7. A perusal of the penalty notice, dated 26.12.2016, issued under Section 274 read with 271 of the Act would show that it in an omnibus show cause notice issued without deleting or striking off the inapplicable part. 8. Similarly, the Assessment Order, dated 26.12.2016, is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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