TMI Blog2010 (2) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... have not validly discharged their burden to prove the real fault of the assessee and the learned CIT(A) erred in confirming the penalty. 4. That the penalty imposed is on mere technical considerations and not valid in law. Therefore, it is prayed that on the facts and on the legal aspects penalty imposed is liable to be cancelled and may please be cancelled. 2. The assessee, Manohar Lal Thakral, Karta HUF is proprietor of the concern M/s. Fancy Wool Enterprises and was enjoying rent, interest and dividend income . Return declaring income of ₹ 1,35,010/- for the financial year 2002-03 relevant to assessment year 2003-04 was filed on 30.11.2003, which was processed u/s 143(1)(a) vide order dated 31.12.2003, D C.R. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19.7.2002 370713 -do- 3,00,000/- 13.9.2002 370736 -do- 3,00,000/- 29.10.2002 370743 -do- 3,00,000/- Total payments made as share of price of properties 14,00,000/- All the above stated payments made through account payee demand drafts. 6. During the course of assessment proceedings in the case of Smt. Kusum Lata Thakral for the asstt.year 2003-04, the AO, Ward 3, Panipat, examined and found having payments made by the assessee on behalf of Smt. Kusum L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion that action for penalty may be permissible only after regular assessment, reliance has been placed on CIT v. Standard Brands Ltd. [2006] 204 CTR 48 (Del). 9. The learned DR, on the other hand, has strongly relied on the impugned order. 10. Having heard the parties and having perused the material on record, we find the grievance of the assessee to be correct. In this case, the return of the assessee was processed u/s 143(1)(a) of the Income Tax Act, on 31.12.2003. Notice u/s 274 read with 271 E of the Act was issued to the assessee on 12.6.2007. It being a case of processing the return of income, there is no finding in the AO s order with regard to the applicability or otherwise of section 269 T of the I.T. Act to the assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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