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2023 (6) TMI 510 - ITAT AHMEDABADLevy penalty u/s 271(1)(c) - disallowance of deduction u/s 80- IB(10) and disallowance of bad debt - contention raised by assessee with respect to non-recording of satisfaction before initiating the penalty proceedings - HELD THAT:- In the case of Sahara India Life Insurance Company Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT] held that imposition of penalty under Section 271(1)(c) without specifying the limb i.e. whether the penalty is being imposed for concealment of particulars of income or for furnishing of inaccurate particulars of income, was not justified. In the case of SSA’S Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] held that the Tribunal, allowed the appeal of the assessee holding that notice issued under Section 274 r.w.s. 271(1)(c) of the Act was bad in law since the order did not specify under which limb of Section 271(1)(c), penalty proceedings had been initiated, there was no substantial question of law which arose for determination. Recording of satisfaction by Assessing Officer in relation to concealment of income or furnishing of inaccurate particulars by assessee in notice issued for initiation of penalty proceedings under section 271(1)(c) is sine qua non for initiation of such proceedings. See M/S. GOLDEN PEACE HOTELS AND RESORTS PVT. LTD. [2021 (3) TMI 195 - SC ORDER]. In Goa Dourado Promotions (P.) Ltd. [2020 (1) TMI 140 - BOMBAY HIGH COURT] the Bombay High Court held that recording of satisfaction by Assessing Officer in relation to concealment of income or furnishing of inaccurate particulars by assessee in notice issued for initiation of penalty proceedings under section 271(1)(c) is sine qua non for initiation of such proceedings Accordingly, we observe that since in the instant case no specific satisfaction has been recorded by the Ld. Assessing Officer either in the body of the assessment order or in the show cause notice issued u/s 271(1)(c) of the Act dated 02.05.2017 for initiation of penalty proceedings penalty imposed on the assessee under section 271(1)(c) is directed to be set-aside. Decided in favour of assessee.
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