Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Shri Surendra A. Kotadia Versus Asstt. Commissioner of Income Tax Central Circle–35, Mumbai

2017 (10) TMI 538 - ITAT MUMBAI

Imposition of penalty under section 271(1)(c) - no satisfaction recorded by AO - Held that:- As noticed that the Assessing Officer has simply mentioned “penalty proceedings under section 271(1)(c) of the I.T. Act are initiated separately”. There is no satisfaction recorded by the Assessing Officer whether the assessee has concealed the particulars of income or has furnished inaccurate particulars of income. Even, in the show cause notice issued under section 274 of the Act on 22nd December 2010, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion 271AAA - no show cause notice under section 274 as mandated under sub–section (4) of section 271AAA was issued to the assessee - Held that:- When the provision contained under section 271AAA mandates issuance of notice under section 274 of the Act before imposition of penalty, the statutory authority being bound by such statutory provision has to act accordingly and cannot deviate therefrom. In our considered view, non–issuance of notice under section 274 is a serious lapse and jurisdiction .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

IAL MEMBER AND SHRI N.K. PRADHAN, ACCOUNTANT MEMBER For The Assessee : Shri Beharilal For The Revenue : Ms. Arju Garodia ORDER PER SAKTIJIT DEY, J.M. Aforesaid appeals by the same assessee are against separate orders of the learned Commissioner (Appeals) confirming imposition of penalty under section 271(1)(c) of the Income-tax Act, 1961 (for short "the Act") for the assessment year 2007-08 and 2008-09 and under section 271AAA of the Act for the assessment year 2008-09. ITA no.3548/Mum .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Subsequently, in response to the notice issued under section 153A of the Act, the assessee filed its return of income on 12th January 2009, declaring the same income of ₹ 3,30,758. In the course of assessment proceedings, the Assessing Officer found that during search and seizure operation in the residence of the assessee total cash of ₹ 20,47,904, was found, out of which ₹ 17.50 lakh was seized. The Assessing Officer observed, out of total cash found of ₹ 20,47,904, cas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s by the company on behalf of the assessee. On the basis of such additions, the Assessing Officer initiated proceedings for imposition of penalty and ultimately passed an order imposing penalty of ₹ 3,52,804 under section 271(1)(c) of the Act. 4. Though, the assessee preferred appeal before the first appellate authority, the learned Commissioner (Appeals) also sustained the penalty imposed. 5. Learned Authorised Representative submitted, the entire cash found during the search and seizure .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ons CIT v/s Manjunatha Cotton and Ginning Factory, [2013] 359 ITR 565 (Kar.), CIT v/s Samson Perinchery, [2017] 392 ITR 004, Meherji Cassinath Holdings Pvt. Ltd. v/s ACIT, ITA no.2555/Mum./2012, dated 28th April 2017. 6. Learned Departmental Representative supported the order of the Departmental Authorities. 7. We have heard rival contentions and perused the material available on record. On a perusal of the assessment order, we have noticed that the Assessing Officer has simply mentioned penalty .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he intends to apply for imposing penalty by striking off inappropriate words or paragraph. In that view of the matter and applying the ratio laid down in the decisions relied upon by the learned Authorised Representative, we hold that imposition of penalty under section 271(1)(c) of the Act in the instant case is not justified. Accordingly, we delete the penalty. 8. In the result, assessee s appeal is allowed. ITA no.3549/Mum./2015 9. In this appeal, the assessee has challenged the imposition of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Assessing Officer, the assessee had not filed original return of income under section 139(1) of the Act for the impugned assessment year since the due date for filing of return of income for the assessment year 2008-09, had not expired till the date of search. During the assessment proceedings, the Assessing Officer made addition on account of unaccounted cash amounting to ₹ 1.50 lakh on-money received from Bhupendra Jhaveri amounting to ₹ 7 lakh unexplained household expenses of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

377; 3,88,344. 11. The learned Commissioner (Appeals) taking note of the fact that the addition of ₹ 7 lakh and ₹ 1,65,965 towards on-money receipt and unexplained household expenses were deleted by the Tribunal restricted the penalty imposed under section 271(1)(c) of the Act to the rest of the additions i.e., perquisite value of ₹ 76,000 and unexplained cash of ₹ 1.50 lakh. 12. Learned Authorised Representative submitted, the Assessing Officer while directing for initia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ticularly Para-6.4 of the assessment order, it is evident, the Assessing Officer while making addition of ₹ 1.50 lakh has directed for initiation of penalty proceedings under section 271(1)(c) of the Act. However, he has not recorded any satisfaction whether initiation of penalty proceedings is for furnishing of inaccurate particulars of income or concealing the particulars of income or both. Similarly, insofar as the addition of perquisite value of ₹ 76,558 is concerned, from the di .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

such penalty proceedings. It is also evident, in the show cause notice issued under section 274 of the Act, the Assessing Officer has not specifically mentioned which limb of the section 271(1)(c) he intends to bring in force for imposition of penalty. Though, the show cause notice issued under section 274 of the Act is in a printed format, however, the Assessing Officer has not struck off the inappropriate words. This is evident from the show cause notice issued under section 274 of the Act fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n pursuance to notice issued under section 153A of the Act, the assessee filed his return of income declaring total income of ₹ 84,13,884, which included undisclosed income of ₹ 81 lakh. On the basis of undisclosed income declared by the assessee, the Assessing Officer initiated penalty proceedings under section 271AAA and ultimately imposed penalty under the said provision for an amount of ₹ 8.10 lakh being 10% of the undisclosed income offered by the assessee. 18. Though, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessee. On the basis of aforesaid submissions made by the learned Authorised Representative the Bench directed the learned Departmental Representative to obtain necessary instruction from the Assessing Officer whether show cause notice under section 274 r/w 271AAA was issued to the assessee before imposition of penalty. On the direction of the Bench, the learned Departmental Representative has obtained necessary instructions from the Assessing Officer and has submitted it before the Bench vide .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version