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Ipsita Malik, C/O R.S. Ahuja & Co. Versus ACIT, Circle 24 (1) , New Delhi

2018 (2) TMI 740 - ITAT DELHI

Penalty u/s. 271 - defective notice - Held that:- AO has initiated the penalty for concealing the particulars of income or furnishing inaccurate particulars of income as well as in the penalty order dated 29.6.2016 he held that the assessee had without reasonable cause concealed the particulars of his income, and / or furnished inaccurate particulars of income assessed. Therefore, in view of above, the penalty in dispute is not sustainable in the eyes of law and needs to be deleted. See CIT & An .....

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S. Sidhu, Judicial Member And Shri L. P. Sahu, Accountant Member Assessee by : Sh. R.S. Ahuja, CA Department by : Ms. Ashima Neb, Sr. DR ORDER Per H. S. Sidhu, JM This appeal by the Assessee is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-34, New Delhi dated 12.7.2016 pertaining to assessment year 2008-09. 2. The grounds of appeal raised in the assessee s appeal read as under:- (a) That on the facts and circumstances of the case the Ld. ITO and the CIT(A) erred in - .....

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lment of income. In support of his contention he draw our attention towards the Notice dated 30.11.2010 issued by the AO. He stated that the notice for initiation of penalty u/s. 271(1)(c) read with Section 274 of the I.T. Act, 1961 is ambiguous and vague because in the notice both furnishing of inaccurate particulars of income as well as concealment of income have been mentioned. He further stated that AO has not specified under which limb of section 271(1)© of the Act, the penalty proceed .....

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Rajender Jain vs. ACIT passed in ITA No. 6804/Del/2013. - Hon ble Karnataka High Court decision in the case of CIT & Ors. Vs. M/s Manjunatha Cotton and Ginnig Factory & Ors. (2013) 359 ITR 565 - Apex Court decision in the case of CIT & Anr. Vs. M/s SSA s Emerald Meadows in CC No. 11485/2016 dated 05.8.2016. 5. On the contrary, Ld. DR relied upon the orders of the authorities below. 6. We have heard both the parties and perused the relevant records, especially the orders of the revenu .....

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ct, 1961dated………………… * have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1,2,3,4 and 5….. 6.1 After perusing the aforesaid contents of the Notice dated 30.11.2010, we are of the view that the AO has initiated the penalty for concealment of particulars of income or furnishing of inaccurate particulars, which is contrary to the provisions of law. We are of the view that no .....

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s Emerald Meadows - 2015 (11) TMI 1620 - Karnataka High Court has held that Tribunal has correctly allowed the appeal filed by the assessee holding the notice issued by the Assessing Officer under section 274 read with Section 271(1)(c) to be bad in law as it did not specify which limb of Section 271(1)© of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Tribunal, while allowing .....

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016 (8) TMI 1145 - Supreme Court. The Apex Court held that High Court order confirmed (2015) (11) TMI 1620 (Supra) - Karnataka High Court. Notice issued by AO under section 274 read with section 271(1)(c) to be bad in law as it did not specify which limb of Section 271(1)© of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income - Decided in favour of assessee. iii) ITAT, A Bench, New Delh .....

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ssessee stating therein that …..you have concealed the particulars of your income or furnished inaccurate particulars of such income… . After perusing the notice dated 26.3.2013 issued by the AO to the assessee, we are of the view that the AO has initiated the penalty for furnishing inaccurate particulars of income or concealment of income as well as in the penalty order dated 30.9.2013 AO has stated that he is satisfied that the assessee has concealed particulars of his income, wh .....

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e Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Tribunal, while allowing the appeal of the assessee, has relied on the decision of the Division Bench of this Court rendered in the case of Commissioner of Income Tax vs. Manjunatha Cotton and Ginning Factory (2013) (7) TMI 620- Karanataka High Court. Thus since the matter is covered by judgment of the Division Bench of this Court, we are .....

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ad been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income - Decided in favour of assessee. 8. In the background of the aforesaid discussions and respectfully following the precedents, we delete the penalty in dispute and decide the issue in favor of the assessee and against the Revenue. iv) ITAT, D Bench, New Delhi decision dated 26.5.2017 in the case of Rajender Jain vs. ACIT passed in ITA No. 6804/Del/2013 wherein the Tribunal ha .....

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007 issued by the AO for initiating the penalty and directing the assessee to appear before him at -AM/PM on -200- and issued a Show Cause to the assessee stating therein that why an order imposing the penalty of amount should not be made u/s. 271(1)(c) of the I.T. Act, 1961. After perusing the notice dated 31.12.2007 issued by the AO to the assessee, we are of the view that the AO has initiated the penalty for furnishing inaccurate particulars of income/concealment of income, but in the penalty .....

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not declare in the return of income inspite of admitting a disclosure of ₹ 40,00,000/- during survey. Thus, the appellant has furnished inaccurate particulars of his income. The facts of the case clearly reveal that the appellant tried to evade payment of taxes by furnishing inaccurate particulars of income. Therefore, I hold that the AO was fully justified in levying the penalty u/s. 271(1)(c) of the Act. The penalty levied by the AO is upheld. This ground of appeal is rejected. 8. Keepin .....

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AM/PM on -200- and issued a Show Cause to the assessee stating therein that why an order imposing the penalty of amount should not be made u/s. 271(1)(c) of the I.T. Act, 1961. After perusing the notice dated 31.12.2007 issued by the AO to the assessee, we are of the view that the AO has initiated the penalty for furnishing inaccurate particulars of income/concealment of income, but in the penalty order dated 06.11.2009 he has stated that he is satisfied that the assessee has furnished the inacc .....

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hing of inaccurate particulars. In our view the penalty is not sustainable in the eyes of law. Our aforesaid view is fortified by the following decisions:- i) CIT & Anr. Vs. M/s SSA s Emerald Meadows - 2015 (11) TMI 1620 - Karnataka High Court has held that Tribunal has correctly allowed the appeal filed by the assessee holding the notice issued by the Assessing Officer under section 274 read with Section 271(1)(c) to be bad in law as it did not specify which limb of Section 271(1)© of .....

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