9911796707
TMI Blog2022 (5) TMI 1643X X X X Extracts X X X X X X X X Extracts X X X X ..... cases of Babuji Jacob [ 2020 (12) TMI 574 - MADRAS HIGH COURT] and Original Kerala Jewellers, [ 2019 (2) TMI 127 - MADRAS HIGH COURT] has considered identical situation and held that the very initiation of penalty proceedings on a defective notice is invalid and it do not warrant imposition of penalty u/s. 271(1)(c) of the Act on the assessee. Appeal of the assessee is allowed. - Shri Mahavir Singh, Vice President And Shri Manoj Kumar Aggarwal, Accountant Member For the Appellant : Shri D. Anand, Advocate. For the Respondent : Shri AR.V. Sreenivasan, Addl. CIT. ORDER PER MAHAVIR SINGH, VP : This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals), Puducherry in ITA No. 434/CIT(A)-PDY/2013-14 dated 09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, the ld. Senior DR stated that this issue is covered in favour of Revenue by Hon ble Jurisdictional High Court decision in the case of Gangotri Textiles Ltd., [2021] 276 Taxman 356. 5. In reply, the ld. Counsel stated that the Hon ble Madras High Court in the case of Gangotri Textiles Ltd., supra has decided the issue on its peculiar facts of case stating that this issue was raised before Hon ble High Court for the first time and before Hon ble High Court, the assessee being a listed company should pointed out the factual as well a legal issue at the very first instance. The Hon ble High Court noted that the assessee neither before AO nor before the first appellate authority or before Tribunal or before Hon ble High Court when the tax ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the phraseology, which was adopted by the assessee, if read as a whole, would clearly show that he had objected to the issuance of the notice and as there was no basis for issuance of the notice under Section 271(1)(c) of the Act, both limbs in the said provision do not get attracted. Hence, the decision of this Court in the case of Sundaram Finance Ltd., cannot be applied. 6. We noted that this issue has been considered by the Hon ble Karnataka High Court in the case of CIT vs. Manjunatha Cotton and Ginning Factory, (2013) 359 ITR 565 in great detail wherein the defect in notice is treated as jurisdictional issue. Even the Hon ble Bombay High Court, Full Bench in the case of Mr. Mohd. Farhan A. Shaikh, supra, has considered exac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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