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2020 (1) TMI 493 - AT - Income TaxOrder of CIT(A) is non-speaking and did not adjudicate points raised by the assessee - whether the income from the hospital income is to be assessed as income from other sources or as house property income AND Whether the loss under the head “income from other sources” can be set off against the salary income? - CIT(A) has dismissed the appeal of the assessee - HELD THAT:- Sub-section (6) of section 250 of the Income Tax Act, 1961 mandates the ld.CIT(A) to state point in dispute, and thereafter record reasons in support of his conclusion. A perusal of the above finding would indicate that it is not in consonance with mandate given in the Act. CIT(A)has not made any analysis of submissions filed by the assessee as well as point raised by him during the assessment proceedings. Therefore, the impugned order is not sustainable; it deserves to b e set aside. However, before setting aside the impugned order, and remitting the issue to the file of the ld.CIT(A), we would like to appraise ourselves with observation of Roadmaster Inds. Of India P.Ltd. Vs. IAC [2006 (5) TMI 86 - PUNJAB AND HARYANA HIGH COURT] as held order passed by the CIT does not satisfy the prerequisites of a speaking order, as the same does not contain reasons to support the order. Penalty u/s 271(1)(c)(iii) - mechanism for quantification of penalty - HELD THAT:- assessee would be directed to pay a sum in addition to taxes, if any, payable him, which shall not be less than , but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of income and furnishing of inaccurate particulars of income. In other words, the quantification of the penalty is depended upon the additions made to the income of the assessee. Upto and until, the issue regarding determination of the taxable income is finalized, penalty under section 271(1)(c) of the Act cannot be imposed upon the assessee. Once we have set aside the quantum proceedings, then very basis to compute penalty gets extinguished. Therefore, we set aside the penalty order passed by the AO as well as by the ld.CIT(A). This issue is also required to be adjudicated on the basis of outcome of quantum proceedings.
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