TMI Blog2018 (10) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty levied and sustained by the authorities below. Therefore, the penalty in dispute is not sustainable in the eyes of law. We accordingly quash the penalty proceedings. Since the penalty has been quashed on the legal ground, there is no need to adjudicate the merits of the case. - Decided in favour of assessee - I.T.A. No. 134/DEL/2016 - - - Dated:- 27-9-2018 - SHRI G.D. AGRAWAL, PRESIDENT AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER For The Assessee : Sh. Pradip Dinodia, CA And Sh. R.K. Kapoor, CA For The Department : M s. Rashmita Jha, Sr. DR. ORDER PER K. NARASIMHA CHARY, J.M. This is an appeal by the Assessee challenging the Order dated 09.10.2015 passed by the Ld. Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is only a matter of application of law and a debatable issue. He further submitted that even the notice u/s. 274 of the Act does not specify that under which limb of section 271(1)(c) of the Act the penalty was proposed and levied. In support of his contention, he placed the reliance on the decision of the Hon ble Supreme Court of India in the case of CIT vs. Veerbhadrappa Sangappa Co. (TS-381-SC-2016); ii) CIT Anr. Vs. M/s SSA s Emerald Meadows Hon ble Supreme Court of India reported in 2016 (8) TMI 1145 and the decision of the Hon ble Karnataka High Court in the case of CIT Anr. Vs. M/s SSA s Emerald Meadows 2015 (11) TMI 1620. 5. Ld. DR heavily relied upon the order of the authorities below. 6. After hearing both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be specifically stated so that the assessee would have the opportunity to meet those grounds. After, he places his version and tries to substantiate his 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 initiati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 -VSMANJUNATHA 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. 9. The Special Leave Petition filed by the Revenue challenging the aforesaid judgement of the High Court was dismissed by the Hon ble Supreme Court in CIT Anr. Vs. M/s SSA s Emerald Meadows 2016 (8) TMI 1145 with the observation that, - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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