9911796707
TMI Blog2024 (8) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the assessee is supported by the decision of CIT vs SSA Emerald Meadows [ 2016 (8) TMI 1145 - SC ORDER] and in the case of CIT vs. Manjunatha Cotton and Ginning Factory [ 2013 (7) TMI 620 - KARNATAKA HIGH COURT] - Decided in favour of assessee. - Dr. M. L. Meena, Accountant Member And Sh. Udayan Das Gupta, Judicial Member For the Appellant : Sh. Rajinder Kumar Chopra, CA For the Respondent : Sh. Shakti Singh, Sr. DR ORDER PER: UDAYAN DAS GUPTA, JM This appeal is filed by the assessee against the order of the Ld. CIT (A) NFAC, dated 23/02/2024, passed u/s 250 of the Act 61, sustaining the penalty of Rs. 11,36,849/- imposed u/s 271(1)(c) of the Act, by the ACIT (OSD) Exemptions, Jalandhar vide order dated 29/03/2019. 2. Applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 10, (23c) (vi) of the Act within three months of the date of order, the said application has not been disposed off by the CIT(E). It is prayed order of CIT(A)NFAC may please be cancelled. 3. The Ld. CIT(A) NFAC, Delhi failed to appreciate the submissions of the Assessee that while initiating penalty proceedings under section 271 (1)(c) of the Act, the A.O. has not recorded his satisfaction that whether it is. a concealment of the income or. submission of inaccurate particulars. It is prayed order of C1T(A) NFAC may please be cancelled. 4. The Ld. CIT(A) NFAC, Delhi failed to pass speaking order on merit of the case and ground wise adjudication as required under section 250(6) of the income Tax Act, 1961. It is prayed order may please be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6, passed u/s 143(3) of the Act 61. 4.3 Appeal preferred before the Ld. CIT (A) against the quantum assessment has been dismissed by the Ld. CIT (A) vide order dated 03/04/2017, due to reasons contained in such appellate order. 5. Now on disposal of the quantum appeal , the penalty proceedings initiated vide notice dated 271(1)(c)/274 , dated 29th September, 2016 , was refixed for hearing , but in absence of any compliance on the part of the assessee and in absence of any representation or submission on the part of the of the assessee, during the penalty proceedings, the AO considered the claim of exemption u/s 10(23C) (vi) of the Act 61, as willful and conscious act of concealment on the part of the assessee resulting in furnishing of inac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO to specify the limb in the penalty notice is an incurable defect and makes the levy of penalty invalid. 9. The Ld. DR relied on the order of the Ld. CIT (A) and prayed for sustaining the penalty. 10. We find from the records that penalty has been initiated vide notice u/s 274/ 271(1)(c) of the Act 61, dated 29/09/2016, and in the said notice it is not specified under which limb the penalty is initiated whether for concealing the particulars of income or for furnishing the inaccurate particulars of such income, and in our view the said notice suffers from incurable defect which goes to the root of the matter and the same is not legally valid. 10.1 The case of the assessee is supported by the decision of the Hon ble Apex court in CIT vs S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is levied and the position being unclear penalty is not sustainable. Therefore, when the Assessing Officer proposes to invoke the first limb being concealment, then the notice has to be appropriately marked. Similar is the case for furnishing inaccurate particulars of income. The standard proforma without striking of the relevant clauses will lead to an inference as to non application of mind. 10.3 For ready reference, the copy of the penalty notice dated 29.09.2016 is reproduced as below: 11. Respectfully following the above judicial pronouncements, we hold in the instant case the penalty notice dated 29/09/2016 issued u/s 274/ 272 (1) (c) of the Act 61, is legally not valid and the penalty imposed on the basis of such notice is also l ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
