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TMI Blog2022 (6) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty was levied ultimately on concealment of income. It clearly shows that Assessing Officer is not clear on what basis the penalty proceedings were initiated and completed. The facts are clearly falls under the category of issue of improper notice. Respectfully following the decision of the Hon'ble Jurisdictional High Court in the case of Mohd Farhan A Shaikh [ 2021 (3) TMI 608 - BOMBAY HIGH COURT] in which the penalty proceedings initiated based on the improper notice is bad in law. Accordingly, penalty levied by the Assessing Officer is accordingly, deleted. - Decided in favour of assessee. - ITA NO. 1872/MUM/2021 - - - Dated:- 27-4-2022 - SHRI AMARJIT SINGH, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings. 2. The learned Assessing Officer has erred in levying penalty u/s 271(1)(c) of the Income Tax Act, 1961 on the ground that the validity of penalty order passed by the learned Assessing Officer u/s 271(1)(c) of the Act is bad in law when the limb under which the penalty is initiated as per assessment order and penalty levied as per penalty order differs. Hence the penalty order passed is not in accordance with the law especially since he has grossly erred in levying the penalty as per provisions of law and as per various judicial pronouncements. 3. The CIT Appeals has erred in confirming penalty to the extent of 100% of tax amount when the claim u/s 10B of the Income Tax Act was a bonafide claim made while filing inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, he submitted that the Assessing Officer is not clear on what basis he has initiated the penalty proceedings. In the Assessment Order, he stated that the penalty proceedings is initiated separately on furnishing of inaccurate particulars whereas the penalty order is passed on concealment of income. Further he stressed that penalty notice is also defective in this regard. He relied on the Hon'ble Bombay High Court in the case of Mohd Farhan A shaik [Taxmann.com 253 (Bombay) 2021) 280 Taxmann]. 5. On merit Ld. AR submitted as under: - During the previous year relevant to A Y 2011-12 the appellant company derived its income from 100% export oriented services rendered and filed its return of income on 30/09/2011 claiming exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned above to avail the benefit of Sec 10B. Now it is well settled law that mere disallowance of bona fide claim made and afterwards the same is disallowed then it will not be either furnishing of inaccurate particulars of Income or concealment of income which are the two basic ingredients for levy of penalty u/s 271(1)(c) of the Income Tax Act. Sir I have given various case laws to substantiate my submission. The leading case is Reliance Petro products Pvt Ltd Supreme Court in this connection. Sir I have submitted legal compilation containing 81 pages on technical as well as on facts/merits and relevant portion is highlighted for your kind perusal. Kindly consider the same. 6. On the other hand, Ld.DR relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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