TMI Blog2018 (8) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... returned income and the assessed income are nil. On this ground also, we cannot sustain the penalty order. No penalty - Decided in favor of assessee - ITA Nos. 5891 to 5895/Del/2016 - - - Dated:- 14-8-2018 - SHRI G.D. AGRAWAL, PRESIDENT And SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER Revenue by : Sh. S.R. Senapati, Sr.DR Assessee by : Shri K.V.S.R. Krishna, CA ORDER Per Bench Challenging the common order of the learned Commissioner of Income-tax (Appeals)-31, New Delhi (for short Ld. CIT(A)) dated 24.08.2016, assessee preferred these appeals. 2. Parties, facts and question of law involved in all these matters are substantially the same, as such, we deem it just and fair to dispose of the same by way of common ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b of Section 271(1)(c), whether it is for concealment of income or for furnishing of inaccurate particulars, the penalty was proposed. For this proposition he placed reliance on CIT vs SSA s Emerald Meadows (SC) in CC No.11485/2016 dated 5.8.2016 and CIT vs. Manjunatha Cotton Ginning Factory (2013) 359 ITR 565 (kar)(HC). Secondly, he submits that when the assessee filed the return pursuant to notice u/s 153A of the Act and validly revised it, such return takes the place and deemed to have been filed the return u/s 139(1) of the Act and since the assessment is complete accepting the revised return, no penalty could be levied. For this proposition, he placed reliance on CIT vs Neeraj Jindal (2017) 393 ITR 1 (Del)(HC); ACIT vs Splendor Landbas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether it was concealment of income or furnishing of inaccurate particulars. 9. So also the notice issued u/s 174 read with Section 271 of the Act, which reads as follows: Sub:- Penalty Proceedings u/s 271(I)(c) of the Income Tax Act, 1961 for the assessment year -Reg. With reference to the above you are given an opportunity to show cause as to why penalty under section 271(l)( c) of the Income Tax Act. 1961 for the A.Y-2009-10 should not be imposed. 2. You are hereby requested to appear before me in Room no. 323, 3rd Floor, ARA Centre, Jhandewalan Extn., New Delhi on 17.04.2015 at 11.00 and show cause why an order imposing a penalty on you should not be made under section 271 of the Income Tax Act, 1961. If you do n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 imposing penalty would offend principles of natural justice and cannot be sustained. Thus once the proceedings are initiated on one ground, the penalty should also be imposed on the same ground. Where the basis of the initiation of penalty proceedings is not identical with the ground on which the penalty was imposed, the imposition of penalty is not valid. The validity of the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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) 359 ITR 565. In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion, no substantial question of law arises in this appeal for determination by this Court. The appeal is accordingly dismissed. 13. The Special Leave Petition filed by the Revenue challenging the aforesaid judgement of the High Court was dismissed by the Hon ble Supreme Court holding : We do not find any merit in this petition. The sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filed in response to notice u/s 153A is to be considered as return filed u/s 139, as the AO has made assessment on the said return and, therefore, the return has to be considered for the purpose of penalty u/s 271(1)(c) of the Act and the penalty is to be levied on the income assessed over and above the income returned u/s 153A, if any. Admittedly, in this matter both the returned income and the assessed income are nil. On this ground also, we cannot sustain the penalty order. 17. Viewing from any angle, we do not find any ground to sustain the penalty, as such, we find that the penalty proceedings have to be quashed. We do so accordingly. 18. Following the same, we answer the grounds in the other Appeal Nos. 5892 to 5895/Del/2016 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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