TMI Blog2017 (3) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, proceed to quash the penalty proceedings as they cannot be sustained under law. - Decided in favour of assessee. - ITA No. 41/RJT/2015 - - - Dated:- 22-3-2017 - S. V. Mehrotra (Accountant Member) And K. Narasimha Chary (Judicial Member) For the Appellant : Kalpesh Doshi, C.A For the Respondent : Avinash Kumar, DR ORDER K. Narasimha Chary (Judicial Member) This is an appeal challenging order dated 15.12.2014 passed by the learned Commissioner of Income Tax (Appeals)-3, Rajkot (for short hereinafter referred to as ld. CIT(A) ). 2. The assessee is an individual deriving income from remuneration, from firm, interest income and during the relevant year, income from house property. The assessee filed ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the decisions of the Jurisdictional High Court in the case of CIT vs Jyoti Ltd., [2013] 34 taxmann.com 65 (Gujarat), CIT vs Whiteford India Ltd., [2013] 38 taxmann.com 15 (Gujarat), New Sorathia Engg. Co. vs CIT, [2006] 155 Taxman 513 (Guj.) and CIT vs Manu Engineering Works, 122 ITR 306 (Gujarat). 4. Per contra, it is the argument of the ld. DR that the assessment order vide paragraph 4 clearly shows that the Assessing Officer has recorded his satisfaction that the assessee had furnished inaccurate particulars of income, as such proceedings u/s 271(1)(c) of the Act were initiated. He also submitted that in the notice dated 22.10.2010 issued u/s 274 r.w.s. 271(1)(c) of the Act, such portion indicating the furnishing of inaccurate pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her cannot be sustained in law. It is needless to point out 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 pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elied upon by the assessee, it is, therefore, 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. 7. In the result, appeal of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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