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TMI Blog2022 (7) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty notice. And allow the grounds of appeal in favour of the assessee. - ITA No.2445/Mum/2021 And ITA No.2439/Mum/2021 And ITA No.2444/Mum/2021 And ITA No.2443/Mum/2021 - - - Dated:- 7-7-2022 - Shri Prashant Maharishi, Accountant Member And Shri Pavan Kumar Gadale, Judicial Member For the Appellant : Shri. D. B. Shah. AR For the Respondent : Shri. Hoshang B. Irani.DR ORDER PER BENCH: These are the four appeals filed by the assessee against the separate orders of Commissioner of Income Tax (Appeals)(CIT(A))- National Faceless Appeal Centre (NFAC), Delhi passed u/s 271(1)(c) and 250 of Income Tax Act, 1961. 2. Since the issues involved in these appeals are identical and similar, hence are clubbed, heard a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of Rs.2,55,302/- and the return of income was processed u/s 143(1) of the Act. The Assessing Officer has received the information from the DGIT(Inv.), Wing, Mumbai that the assessee has obtained the benefit of the accommodation entries from the parties listed in the website of the Sales Tax Department Maharashtra. The assessee has obtained the accommodation entries/bogus purchases from 11 parties aggregating to Rs.1,01,39,508/-, therefore, the Assessing Officer has reason to believe that the income has escaped the Assesseement and issued notice u/s 148 of the Act on 11.02.2014. 4. In compliance of notice u/s 148 of the Act. The assessee has filed a letter to treat the return of income filed on 25.09.2009 as due compliance. Subsequentl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticulars of income and levied the penalty and passed order u/s 271(1)(c) of the Act. 6. Aggrieved by the penalty order, the assessee has filed an appeal before the CIT(A). In the appellate proceedings the assessee has filed the submissions. Whereas the CIT(A) was not satisfied with the explanations and confirmed the penalty levied by the Assessing officer and dismissed the appeal. Aggrieved by the CIT(A) order, the assessee has filed an appeal before the Honble Tribunal. 7. At the time of hearing, the Ld.AR of the assessee submitted that the assessee has cooperated in submitting the information before the A.O. Further the notice issued for levy of penalty is invalid and defective and supported the submissions with the judicial decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records satisfaction for imposing penal ty 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 penal ty 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 penal ty proceedings, but they are not composite proceedings to draw strength from each other. Nor can each cure the other s defect. A penal ty proceeding is a corollary; nevert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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