TMI Blog2019 (3) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 25-3-2019 - Shri Kul Bharat, Judicial Member And Shri Manish Borad, Accountant Member For the Assessee : S/Shri Sumit Nema, Sr. Advocate with Gagan Tiwari, Advocate For the Revenue : Shri K.C. Selvamani, Sr.DR ORDER PER MANISH BORAD, AM. The above captioned appeals are filed at the instance of assessee pertaining to Assessment Years 2006-07 2008-09 and are directed against the orders of Ld. Commissioner of Income Tax (Appeals)-I (in short Ld.CIT(A) ], Bhopal dated 28.02.2016 which are arising out of the order u/s 271(1)(c) of the Income Tax Act 1961(In short the Act ) dated 28.02.2016 framed by DCIT-1(1), Bhopal. 2. Assessee has raised following grounds of appeal; Assessment Year 2006-07 1. That on the facts and circumstances of the case, the Ld.CIT(Appeals) erred in confirming the penalty of ₹ 16,50,000/- imposed u/s 271(1)(c) of the Act without considering the fact that except addition for household expenses of ₹ 75,145/-, other income were already shown buy the appellant in the return filed u/s 153A suomotto as per his own will and paid the taxes due as per return and hence, penalty for concealment is not imposable in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal legal ground challenging the validity of notice issued u/s 274 r.w.s. 271(1)(c) of the Act claiming it to be illegal and bad in law. We find that though the assessee has not raised the legal ground at the time of filing the appeal but in our considered opinion and following the ratio of judgment of Hon'ble Apex Court in the case of National Thermal Power Company Limited 229 ITR 383(SC) as well as in the case of Jute Corporation of India 178 ITR 668 (SC) the additional legal grounds raised before us deserves to be admitted for adjudication, if the same involves point of law which does not require any further investigation of facts. It is also clear that the issues raised in the additional ground of appeal goes to the root of the jurisdiction of the Assessing Officer to levy the penalty u/s 271(1)(c) of the Act and therefore the same are relevant to determine the liability of the assessee for penalty u/s 271(1)(c) of the Act. Accordingly the additional ground is admitted for adjudication. 6. Briefly stated facts as culled out from the records are that the assessee is an individual and derives income from property consultancy and income from other sources. A search was cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and perused the records placed before us. The issues raised by the assessee revolves around the levy of penalty at ₹ 16,50,000/- and ₹ 36,70,000/- levied by the Ld. A.O and confirmed by Ld.CIT(A). 11. Now the assessee is in appeal before the Tribunal, firstly raising the legal issue pleading that Ld. A.O has wrongly initiated the penalty proceedings by not specifying the charge for levy of penalty i.e. whether the penalty proceedings has been initiated for concealing particulars of income or for furnishing the inaccurate particulars of income. It was also pleaded by the Ld. Counsel for the assessee that though the Ld. Assessing Officer has made proper satisfaction on record in the assessment order for initiating penalty proceedings but in the notice issue u/s 274 r.w.s. 271(1)(c) of the Act, but Ld. A.O remained silent by not specifying as for which charge the penalty proceedings have been initiated. To examine this fact we have gone through the impugned notice issued on 30.10.2012 for initiating the penalty proceedings u/s 271(1)(c) of the Act for Assessment Year 2006-07 and 2008-09. For reference we reproduce below the notice u/s 274 of the Act for Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the inaccurate particulars of income. It was also pleaded by the Ld. Counsel for the assessee that though the Ld. Assessing Officer has made proper satisfaction on record in the assessment order for initiating penalty proceedings but in the notice issue u/s 274 r.w.s. 271(1)(c) of the Act, but Ld. A.O remained silent by not specifying as to which charge the penalty proceedings have been initiated. To examine this fact we have gone through the impugned notice issued for initiating the penalty proceedings u/s 271(1)(c) of the Act which is placed at Page-52 of the Paper book and the relevant extract is reproduced below: To Shri Varad Mehta 239, Sunny Palace M P Nagar Zone-1, Bhopal Sir / Madam, Sub:- Penalty proceeding u/s .. 271( 1 ) ( c) .. of the Income Tax Act 1961 for the AY 2008.09 In connection with the penalty proceedings u/s, 271(1) (c) for the assessment year(s) 2008-09 you are requested to attend my office on 18.01. 2010 at 11.00 AM to show cause why penalty should not be imposed. However. if you do not wish to be heard in person in this regard, you may submit your written submissions so as to reach me by the above date which will be considered before d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itiated. Ld. A.O should be clear as to whether the alleged addition goes under the limb of concealment of particulars of income or furnishing inaccurate particulars of income . Merely issuing notice in general proforma will negate the very purpose of natural justice as held by the Hon'ble Apex Court in the case of Dilip N Shraf 161 Taxmann 218 that the quasicriminal proceedings u/s 271(1)(c) of the Act ought to comply with the principles of natural justice. 14. We therefore respectfully following above referred judgments and in the given facts and circumstances of the case are of the considered view that the alleged notice issued u/s 274 r.w.s. 271(1)(c) of the Act dated 31.12.10 is invalid, untenable and suffers from the infirmity of non application of mind by the Assessing Officer. We accordingly direct to delete the penalty of ₹ 16,00,000/- imposed u/s 271(1)(c) on this ground itself. We accordingly allow the additional ground raised by the assessee on the legality of the penalty proceedings initiated u/s 271(1)(c) of the Act. Since the penalty u/s 271(1)(c) also has been dealt on the preliminary points other arguments of the assessee dealing with the merits of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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