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TMI Blog2023 (3) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... concealment of income only, on account of unsecured loan. The Hon'ble Apex Court in case of M/s. SSA's Emerald Meadows [ 2016 (8) TMI 1145 - SC ORDER] dismissed the Special Leave Petition filed by the Revenue against the judgment rendered by Hon'ble High Court of Karnataka whereby identical issue was decided in favour of the Assessee. In the case of Manjunatha Cotton Ginning Factory [ 2013 (7) TMI 620 - KARNATAKA HIGH COURT] observed where the Assessing Officer proposed to invoke first limb being concealment, then the notice has to be appropriately marked. The Hon'ble High Court also held that the standard proforma of notice under section 274 of the Act without striking of the irrelevant clause would lead to an inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account disallowance of depreciation on car, and also initiated the penalty proceedings for concealing the particulars of income and furnishing inaccurate particulars of Income. Consequently the Assessing Officer issued notice u/s. 274/271(1)(c) of the Act on dated 27.03.2014 and ultimately vide penalty order dated 26.09.2014, levied the penalty to the tune of Rs. Rs.7,22,288/- @ of 100% of the tax sought to be evaded on the addition of Rs.23,37,500/-. 3. The Assessee being aggrieved by the penalty order dated 26.09.2014 passed by the Assessing Officer, preferred first appeal before the learned Commissioner, who by impugned order dated 03.12.2015 dismissed the appeal of the Assessee. 4. Being aggrieved with the impugned order, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de the legal issue involved in the instant case first before dwelling into the merits of the case. 7.1 The Hon'ble Apex Court in case of M/s. SSA's Emerald Meadows, (2016) 73 taxmann.com 248(SC) dismissed the Special Leave Petition filed by the Revenue against the judgment rendered by Hon'ble High Court of Karnataka whereby identical issue was decided in favour of the Assessee. Operative part of the judgment in case of M/s. SSA's Emerald Meadows (supra) decided by Hon'ble High Court of Karnataka is reproduced below:- 2. This appeal has been filed raising the following substantial questions of law: (1) Whether, omission if assessing officer to explicitly mention that penalty proceedings are being init ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Assessee, has relied upon the decision of the Division Bench of this Court rendered In the case of COMMISSIONER or INCOME TAX -VS- MANJUNATHA COTTON AND GINNING FACTORY (2013) 359 ITR 565. 4. In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion, no substantial question of law arises in this appeal for determination by this Court, the appeal is accordingly dismissed. 7.2 The Hon'ble Karnataka High Court in the case of Manjunatha Cotton Ginning Factory, 359 ITR 565 (Kar) observed where the Assessing Officer proposed to invoke first limb being concealment, then the notice has to be appropriately marked. The Hon'ble High Court also held that the standard pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the CIT(A) and direct the Assessing Officer to cancel the penalty so levied. 7.4 The penalty provisions of section 271(1)(c) of the Act are attracted, where the Assessee has concealed the particulars of income or furnished inaccurate particulars of such income. It is also a well-accepted proposition that the aforesaid two limbs of section 271(1)(c) of the Act carry different meanings. Therefore, it is imperative for the Assessing Officer to specify the relevant limb so as to make the Assessee aware as to what is the charge made against him so that he can respond accordingly. 7.5 In the background of the aforesaid legal position and, having regard to the manner in which the Assessing Officer has issued the notice referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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