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2022 (4) TMI 799 - AT - Income TaxLevy of penalty u/s.271(1)(c) - addition u/s.68 on Unexplained cash deposits in the Savings Bank A/c maintained with India Bank - assessee as stated primary defect in the notice i.e. the jurisdictional issue that the AO while initiating penalty proceedings has not scored-off under which limb the penalty is levied - even the Ld.CIT(A) in the first round has categorically quashed the penalty order as relying on SHRI SAMSON PERINCHERY [2017 (1) TMI 1292 - BOMBAY HIGH COURT] - HELD THAT:- Where defective notices, were neither of limb is scored off, the notice is treated as defective. We noted that when the very defect is quashed by the Ld.CIT(A) in the first round, nothing survives for penalty on the remainder amount. When this was pointed out to the ld.Sr.DR, he could not controvert the above stated facet situation. As the issue is clear in the first round of appeal that the Ld.CIT(A) has deleted the penalty and Revenue is not in appeal against the order of the Ld.CIT(A) and hence, that has become final. However, the penalty levied in the second round will not survive, because the very case is jurisdictional issue goes to the root of the matter, once root is taken out, nothing survives. Hence, we deleted the penalty and allow the appeal filed by the assessee.
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