2018 (7) TMI 2366

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..... its original satisfaction and imposed penalty for default committed on account of filing 'inaccurate particulars of income' with reference to long term capital gains. Therefore, there is a definite change in the basis of initiation of penalty proceedings and imposition thereof which is not permissible in law. The issue is squarely covered in favour of the assessee by the decision of the co-ordinate bench in in Shri Kantibhai Naranbhai Prajapati [2018 (2) TMI 1823 - ITAT AHMEDABAD] as held in the absence of continuity in the findings of the AO and the CIT(A), the order of the penalty passed by the AO is liable to be struck down on this ground alone. Decided in favour of assessee.
SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SMT. MADHU .....

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..... al satisfaction and imposed penalty for default committed on account of filing 'inaccurate particulars of income' with reference to long term capital gains. Therefore, there is a definite change in the basis of initiation of penalty proceedings and imposition thereof which is not permissible in law. The issue is squarely covered in favour of the assessee by the decision of the co-ordinate bench in in Shri Kantibhai Naranbhai Prajapati vs. ITO ITA No. 2880/Ahd/2014 order dated 15.02.2018. The relevant operative para of the order of the co-ordinate bench is reproduced hereunder: "8. We straight away find that the AO vide penalty order dated 25/11/2013 under s.271(1)(c) of the Act imposed penalty on additions made alleging 'concealment of pa .....

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..... l in Gian Chand Batia vs. DCIT 61 ITD 24(All.). Therefore, where concurrent I.T.authorities are not sure about nature of default, the penal action under s.271(1)(c) of the Act is not sustainable in law. 9. Consequently, the penalty order of the AO dated 25/11/2013 is set aside and penalty imposed thereby is cancelled." 6. Since the imposition of penalty stands deleted on the aforesaid legal ground, we are not inclined to deal with other aspects of the arguments raised on behalf of the assessee for deletion of penalty. Thus, we find no error in the conclusion drawn by the CIT(A) for deletion of penalty. 7. In the result, the appeal of the Revenue is dismissed. This Order pronounced in Open Court on 17/07/2018
Case laws, Decisions, .....

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