9911796707
TMI Blog2024 (6) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... r after obtaining requisite approval. Since the order passed by the Income Tax Officer does not contain the requisite recital, it has to be held that no such approval was obtained. The order itself is incompetent. An incompetent order is a nullity and the point as regards nullity can be taken at any stage. It can even be taken at the stage of execution. Even if the orders imposing penalty were not set aside by us, which we propose to do, the order could not have been executed. We have given a thoughtful consideration to the submission of the AR, we are of the considered opinion that the penalty order of Rs. 150000/- was passed without prior approval of the Joint Commissioner which is liable to be set aside. We therefore, set aside both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Joint Commissioner of Income Tax and therefore, such order needs to be deleted. 3. On facts and circumstances of the case, the authorities below have erred in upholding the levy of penalty of Rs. 1,50,000/- u/s 2718 of IT Act ignoring the fact that there is ambiguity in the show cause notice about the default attributable to the appellant and therefore, such order needs to be deleted. 4. On facts and circumstances of the case, the authorities below have erred in upholding the levy of penalty of Rs. 1,50,000/- u/s 271B of IT Act ignoring the fact that the penalty order is barred by limitation within the meaning of sec 275(1)(a) of IT Act for the reason that the above order was required to be passed on or before extended date of 31.03.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the order of the AO and Ld CIT(A) and submitted that required details were furnished by the assessee company in the compliance of the notice. The AO therefore, for the reasons noted in the order levied the penalty. He submitted that before CIT(A), the assessee has not submitted written submission or documents. The Ld CIT(A) thereafter for the reasons noted in the order has dismissed the appeal. Therefore, he submitted that the order of AO and CIT(A) be upheld. 6. Before us the Ld. AR for assessee has submitted that alleged notice is vague because the AO has not struck down the irrelevant portion /fault which was not applicable in this case. He has further submitted that the proceeding was time barred. It is also submitted that impugned p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee only screen shot was uploaded on the e-portal. Perusal from the order of the AO it reveals that notice was served on the assessee by the verification unit through the post ID no ED 4991853091N , which shows that the notice was properly served. 11. The Ld. AR has submitted that penalty order was barred by limitation. The penalty order was passed on 15-03-2022 by NFAC when the due date for limitation was 31-03-2022. Therefore this argument is not tenable. 12. Ld AR has submitted that order imposing penalty does not disclose that prior approval of the Joint Commissioner was obtained in this case. 13. Section 44AB reads as under :- Every person carrying on business shall, if his total turnover exceeds Rs. 1 crore is required to get hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o jurisdiction to impose penalty exceeding a sum of Rs. 10,000/- except with the approval of the Deputy Commissioner. Mr.Agarwal submitted that it is a question of fact. We are unable to accept this submission. It was the obligation of the Income Tax Officer to indicate in his order that he passed the order after obtaining requisite approval. Since the order passed by the Income Tax Officer does not contain the requisite recital, it has to be held that no such approval was obtained. The order itself is incompetent. An incompetent order is a nullity and the point as regards nullity can be taken at any stage. It can even be taken at the stage of execution. Even if the orders imposing penalty were not set aside by us, which we propose to do, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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