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TMI Blog2018 (8) TMI 1486X X X X Extracts X X X X X X X X Extracts X X X X ..... working as Principal of Homeo Medical College, Kozhikode. He was also doing private practice at his home. For the AY 2002-03, the assessee filed his return of income on 09/04/2003 declaring a total income of Rs. 4,55,710/- including an estimated income of Rs. 3,00,000/- from private practice. A survey u/s. 133A of the I.T., Act was conducted at the premises of the assessee on 19/03/2003. During the course of survey, it was noticed that the assessee was getting huge income from private practice in the income tax returns filed. On the basis of the cash flow statement, the AO made an addition of Rs. 11,25,161/- determining the total income at Rs. 15,80,870/-. The assessee went in appeal and the CIT(A) vide his order dated 25/06/2004 reduced th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002-03 in time but only filed it on 09/04/2003, i.e., after the date of survey offering just an income of Rs. 3 lakhs from private practice. According to the CIT(A), the AO made the addition on the basis of the cash flow statement and the CIT(A) while passing appellate order on the assessment order had given substantial reductions in a case where the assessee had substantial unaccounted income from private practice and the actual income would have been much more than the assessed income, had the assessee maintained the books of account. 4.2 In view of the above, the CIT(A) was of the opinion that the assessee, being a Government medical officer, was having scant regard for the income tax law. The CIT(A) was of the opinion that the AO had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. ABR Auto Pvt. Ltd. Vs. ACIT in ITA No. 6236/DEL/2015 dated 04/12/2017. 6. On the other hand, the Ld. DR relied on the order of the lower authorities. 7. We have heard the rival submissions and perused the record. We have carefully gone through the notice issued u/s. 274 r.w.s. 271 of the Act. For clarity, we reproduce the notice hereinbelow: "NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME TAX ACT, 1961 Dated 22/01/2004 To Dr. Esmail Sait, 5/1333, Rarichan Road, East Nadakkavu Calicut Whereas in the course of proceedings before me for the assessment year 2002-03 it appears to me that you:- *have without reasonable cause failed to furnish me return of income which you were required to furnish by a notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nishing of inaccurate particulars of income. As held by the Karnataka High Court in the case of CIT & Anr. vs. M/s. SSA's Emerald Meadows (2015) (11) TMI 1620 that the notice issued by the Assessing Officer u/s. 274 r.w.s 271(1)(c) is to be bad in law as it did not specify which limb of section 271(1)(c) 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. This view was confirmed by the Supreme Court in the same case, i.e., CIT & Anr. vs. M/s. SSA's Emerald Meadows reported in (2016) (8) TMI 1145. 7.2 In view of the above discussion, we are inclined to hold that the penalty proceedings initiated by the AO is ab initio and allow the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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