TMI Blog2017 (2) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... see contended that there was no intention to hide or suppress anything. In our considered opinion the explanation offered by assessee is not satisfactory. The issuance of notice is an administrative device for informing the assessee about the proposal of levy of penalty in order to enable him to explain why it should not be levied against him. If it is taken for the sake of argument that mere mistake in the language in the notice for non-striking off of ‘inaccurate particular’ or marking on ‘concealment of income’ portion cannot by itself invalidate the notice. Entire facts and backgrounds thereof are to be kept in mind. Every concealment of fact may ultimately result in filing of or furnishing inaccurate particular. As decided in CIT Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unexplained expenditure under Section 69C of the Act and initiated penalty. The AO issue noticed to the assessee under Section 274 r.w.s. 271(1) (c) on 30-12-2009 (posted on 30th January 2010). The second notice u/s 274 r.w.s. 271C dated 8th |June 2010 was again served upon Assessee. The Assessee filed its reply dated 23rd January 2010. In the reply Assessee contended there was no intention on the part of assessee to hide or suppress the income. The explanation of assessee was not accepted by AO holding that the levy of penalty is a civil liability and wilful concealment is not an initial ingredient for attracting civil liability. The AO levied the penalty @ 100% and worked out the penalty of ₹ 15,823/-. The AO levied the penalty for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. 4. We have considered the rival contention of the parties and gone through the orders of authority is below. From the records we have noticed that a survey proceeding u/s 133A were carried out in the business premises of Patel Group of Cases. As assessee s case was covered in this group, certain incriminating documents were found and seized. Consequent upon notice u/s 153A was issued to the assessee. In response to said notice assessee filed return of income on 17-10-2008 declaring income of ₹ 81,17,970/-. Assessment was completed u/s 143(3) r.w.s. 153A on 30-12-2009. The AO made the addition of ₹ 47,000-/ holding that assessee incurred these expenses in cash in construction Patel Heritage. The amount is not reflected in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h expenditure in books of accounts. Thus, it is a clear case of concealment of income. It was not a case that any legal claim of expanses was made and the same was disallowed during the assessment proceedings. The material was seized during the survey under section 133A, despite the evidence in possession of revenue the assessee has not shown the cash expanses in its books of account. In the explanation the assessee contended that there was no intention to hide or suppress anything. In our considered opinion the explanation offered by assessee is not satisfactory. The ld AR for the assessee relied on the decision of Hon ble Gujarat High Court in CIT Vs Whiteford India Ltd (supra) wherein it was held that where no clear finding was recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inaccurate particular. The decision of Bombay High Court in Kaushalya (supra) was brought in the notice of ld AR for assessee at the time of hearing of the submission. With utmost regard to the decision of Gujarat High Court in CIT Vs Whiteford India ltd (supra), we may note that the judgement of Hon ble Jurisdictional High Court in CIT Vs Kaushalya (supra) is binding precedent upon us. In view of the above factual and legal position which do not find any merit in the submission of the dead AR of the assessee that while issuing notice the specific limb of charges for living penalty was not strike of in the notice under section 274 read with section 271 (1)(c) of the Act. Hence we do not find any merit in the grounds of appeal raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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