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TMI Blog2022 (5) TMI 1380X X X X Extracts X X X X X X X X Extracts X X X X ..... lment of income or for furnishing of inaccurate particulars of income. DR could not controvert the findings of the CIT(A) with any new cogent material evidence or information to take a different view. Accordingly we do not find any infirmity in the order of the CIT(A), who has considered the facts, provisions of law and passed a reasoned and speaking order and uphold the same and dismiss the grounds of appeal of the Revenue. - ITA No. 2331/MUM/2021 - - - Dated:- 26-5-2022 - Shri M. Balaganesh (Accountant Member) And Shri Pavan Kumar Gadale (Judicial Member) For the Revenue : Mr. T. Shankar.DR For the Assessee : Mr. Siddharth Kothari. AR ORDER PER PAVANKUMAR GADALE (J M ): The Revenue has filed an appeal against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s purchases and made the addition of Rs.81,328/- as the genuineness of transactions were doubted (ii) similarly made addition on account of lease rent of Rs.7,71,75,000/-and assessed the total income of Rs.15,83,94,898/- and passed the order u/s 143(3) of the Act dated 26.03.2013. 3. Aggrieved by the A.O. order, the assessee has filed an appeal before the Ld. CIT(A). The Ld. CIT(A) has confirmed the disallowance of bogus purchases and in respect of addition of lease rent, the CIT(A) has directed the Assessing Officer to adopt Annual let-out value(ALV) of the property as Rs.16,34,10,000/- and partly allowed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Tribunal, whereas the Hon ble Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, submissions of the assessee and the legal issue of validity of issue of notice where the Assessing Officer has initiated the penalty notice without specifying nature/ reasons for initiation of penalty. whereas the Ld. CIT(A) in the course of hearing has called for the details from the A.O. on the issue of initiation of penalty u/s 271(1)(c) and the Ld. CIT(A) has considered the facts, circumstances judicial decisions and the jurisdictional Hon ble High Court decision and deleted the penalty and allowed the assessee s appeal. 6. Aggrieved by the CIT(A)order, the Revenue has filed an appeal before the Hon ble Tribunal. At the time of hearing the Ld.DR submitted that the Ld. CIT(A) erred in deleting the penalty on the technicalities of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk. Prudence demands prevention is better than cure. Answers: Question No. 1: If the assessment order clearly records satisfaction for imposing penalty on one or the other, or both grounds mentioned in Sec. 271(1)(c), does a mere defect in the notice not striking off the irrelevant matter vitiate the penalty proceedings? 181. It does. The primary burden lies on the Revenue. In the assessment proceedings, it forms an opinion, prima facie or otherwise, to launch penalty proceedings against the assessee. But that translates into action only through the statutory notice under Sec. 271(1)(c), r.w.s. 274 of the Act. True, the assessment proceedings form the basis for the penalty proceedings, but they are not composite proceedings to draw streng ..... X X X X Extracts X X X X X X X X Extracts X X X X
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