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TMI Blog2017 (4) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Act, 1961 (Act). 3. The facts and circumstances under which penalty u/s.271(1)( c) of the Act was imposed on the Assessee by the AO are as follows: The Assessee is an individual. He is a doctor by profession. In the course of assessment proceedings for AY 2008-09 the revenue came across a Bank Account viz., A/C.No.116010100002738 with Axis Bank, Howrah in the name of the Assessee. This bank account had not been disclosed by the Assessee in the return of income or in the accounts filed along with the return of income. Based on the aforesaid discovery, the revenue initiated reassessment proceedings u/s.147 of the Act for AY 2004-05 to 2007-08 and in those proceedings, the AO called upon the Assessee to explain the source of fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elay of about 310 days in filing appeal before CIT(A) against the orders of assessments dated 30.12.2011 and a delay of about 135 days in filing appeal against the orders dated 29.6.2012 passed u/s.271(1)( c) of the Act. All the appeals were filed before the CIT(A) on the same day. 6. The CIT(A) refused to condone the delay in filing appeals. The CIT(A) further confirmed the orders of assessment by the AO dated 30.12.2011 by orders dated 21.3.2014 and also confirmed the orders dated 29.6.2012 imposing penalty on the Assessee u/s.271(1)( c) of the Act by order dated 28.3.2014 which orders are subject matter of these appeals. 7. Against the order of CIT(A) in the appeals against the orders of assessment dated 30.12.2011, the Assessee prefer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of having concealed particulars of income or having furnished inaccurate particulars of income. Copies of the show cause notice u/s 274 of the Act were filed before us in this regard. Perusal of the same reveals that AO has not struck out the irrelevant portion in the show cause notice and therefore the show cause notice does not specify the charge against the assessee as to whether the charge is of concealment of particulars of income or furnishing of inaccurate particulars of income. 10. The ld. Counsel for the assessee drew our attention to the decision of the Hon'ble Karnataka High Court in the case of CIT vs. SSA's Emerald Meadows in ITA No.380 of 2015 dated 23.11.2015 wherein the Hon'ble Karnataka High Court following its own decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case u/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealing particulars of income or furnishing inaccurate particulars of income. The show cause notice u/s 274 of the Act does not strike out the inappropriate words.
In these circumstances, we are of the view that imposition of penalty cannot be sustained. The plea of the ld. Counsel for the assessee which is based on the decisions referred to in the earlier part of this order has to be accepted. We therefore hold that imposition of penalty in the present case cannot be sustained and the same is directed to be cancelled.
12. In the result, all the appeals of the Assessee are allowed.
Order pronounced in the Court on 05.04.2017. X X X X Extracts X X X X X X X X Extracts X X X X
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