TMI Blog2017 (3) TMI 1538X X X X Extracts X X X X X X X X Extracts X X X X ..... , proceed to quash the penalty proceedings as they cannot be sustained under law. - Decided in favour of assessee. - ITA Nos. 203 & 204/RJT/2013 - - - Dated:- 24-3-2017 - S. V. Mehrotra (Accountant Member) And K. Narasimha Chary (Judicial Member) For the Appellant : Written Submission For the Respondent : Usha Shrote, DR ORDER K. Narasimha Chary (Judicial Member) The above appeals are filed by the assessee challenging the confirmation of penalty by the learned Commissioner of Income Tax (Appeals)-IV, Rajkot (for short hereinafter referred to as ld. CIT(A) ) dated 28.2.2013 in Appeal Nos.CIT(A)-IV/0249/10-11 CIT(A)- IV/0251/10-11 for Assessment Year 2004-05 2005-06 respectively. 2. Since the issue involve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concealment of particulars of income by the assessee, which is bad in law. For this proposition, reliance has been placed on the following decisions :- i) Order of ITAT, Rajkot E-Bench in the case of Shri Paraskumar V. Kataria, ITA No. 542/RJT/2012 dated 20.2.2017; ii) Order of ITAT, Kolkata Bench in the case of Suvaprasanna Bhatacharya, ITA No. 1303/Kol/2010 dated 6.11.2015; iii) Manjunatha Cotton Ginning Factory, [2013] 359 ITR 565 (Kar.) iv) New Sorathia Engg. Co vs CIT, [2006] 282 ITR 642 (Guj) v) CIT vs Rajan Co., [2007] 291 ITR 340 (Del.) vi) CIT vs Virgo Marketing (P) Ltd., [2008] 171 Taxman 156 (Delhi) vii) Ms. Madhushree Gupta vs Union of India, [2009] 183 Taxman 100 (Delhi) viii) CIT vs MWP Ltd., [2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfaction of the existence of the grounds mentioned in Section 271(1)(c) when it is a sine qua non for initiation or proceedings, the penalty proceedings should be confined only to those grounds and the said grounds have to be specifically stated so that the assessee would have the opportunity to meet those grounds. After, he places his version and tries to substantiate his claim, if at all, penalty is to be imposed, it should be imposed only on the grounds on which he is called upon to answer. It is not open to the authority, at the time of imposing penalty to impose penalty on the grounds other than what assessee was called upon to meet. Otherwise though the initiation of penalty proceedings may be valid and legal, the final order imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, clear that drawing up penalty proceedings for one offence and finding the assessee guilty of another offence or finding him guilty of either one or other cannot be sustained in law. In this case also the assessment order reads that penalty proceedings were initiated for furnishing inaccurate particulars of income, whereas the penalty order shows that the assessee was guilty of concealment of particulars of income/furnishing inaccurate particulars of income. According to the binding precedents referred to above, such a course is bad in law and cannot be sustained. We, therefore, proceed to quash the penalty proceedings as they cannot be sustained under law. 8. In the result, both the appeals of the assessee are allowed. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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