TMI Blog2023 (8) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... resumption. Thus, no penalty in respect of addition is leviable and penalty as levied and confirmed by the ld CIT(A) in respect of above addition stands deleted. Coming to addition, a perusal of order of the AO in the penalty proceedings shows that the assessee has categorically made the submission that this amount has been reflected in the profit and loss account and TDS has been given effect in the return of income. Admittedly, penalty proceedings are separate and independent proceedings. AO had a duty to examine the same. AO has not dislodged the submission of the assessee. This being so, on this ground itself, the penalty as levied in respect of addition is liable to be cancelled and I do so. Further coming to the arguments of ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings has been initiated and levied u/s. 271(1)(c) by an order dated 22.6.2018. It was the further submission that the show cause notice did not specify whether the penalty was being levied for concealment of income or furnishing of inaccurate particulars of income. It was the further submission that the ld CIT(A) had confirmed the penalty by rejecting the claim of the assessee and the various case laws submitted by the assessee on this issue. Ld AR placed before me a copy of the reassessment order on 22.3.2022 passed in the case of the assessee for the impugned assessment year. It was the submission that the reassessment order had been quashed by the Hon ble Jurisdictional High Court of Orissa vide an order dated 17.3.2022 in W.P(C).N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med by the ld CIT(A). It was the further submission that the reference made by the ld AO is the interpretation of the submission made by the assessee, which has been extracted by the Assessing Officer in his penalty order. It was the submission that the penalty as levied by the AO and confirmed by the ld CIT(A) is liable to be upheld. 5. I have considered the rival submissions. A perusal of the facts of the present case clearly shows that the penalty has been initiated and levied in respect of two issues one being the addition of Rs. 1,04,912/- representing the amount received from Hindustan Unilever Ltd., which as per the AO has not been included in the return of income filed by the assessee and second being admittedly is an estimated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is for concealment of income or furnishing of inaccurate particulars, the Co-ordinate Bench of this Tribunal has consistently been holding as follows: 1. We have considered the rival submissions. A perusal of para 16 of the decision of the Hon ble Madras High Court in the case of Sundaram Finance Ltd., cited by the ld.Sr. DR, clearly shows that the issue of striking off of the inappropriate limb in the notice u/s. 274/271(1)(c) of the Act was a plea that was not taken by the assessee either before the AO or before the First Appellate Authority or before the Tribunal or before the Hon ble High Court when the Tax Appeals were filed before the respective forums. Therefore, the Hon ble Madras High Court had taken a view even assuming th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e show cause notice the AO has not struck off the inappropriate clauses, the penalty as levied by the ld. AO u/s. 271(1)(c) of the Act and as confirmed by the ld.CIT(A) in the present appeals of both the assessees stand deleted. 2. Similarly, the Hon ble Jurisdictional High Court in the case of Ananta Gopal Karatkala, passed in ITA No.30 of 2005, dated 10.04.2019 has following the decision of the Hon ble Karnataka High Court in the case of Manjunatha Cotton and Ginning Factory, referred to supra, under the similar circumstances, confirmed the cancellation of the penalty. 3. Respectfully following the decision of the Hon ble Jurisdictional High Court in the case of Ananta Gopal Karatkala, referred to supra, as also the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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