TMI Blog2019 (3) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... ty has to be made only on the ground of which the penalty proceedings has been initiated, and it cannot be on a fresh ground of which the assessee has no notice. - We delete the penalty u/s 271(1)(c) confirmed by the Ld. CIT(A). - Decided in favour of assessee. - ITA No. 2742/MUM/2016 - - - Dated:- 25-3-2019 - Shri Pawan Singh (Judicial Member) And Shri N.K. Pradhan (Accountant Member) For the Assessee : Mr. Ravi Sawana, AR For the Revenue : Mr. D.G. Pansari, DR ORDER PER N.K. PRADHAN, AM This is an appeal filed by the assessee. The relevant assessment year is 2010-11. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-28 Mumbai [in short CIT(A) ] and arises out of the levied p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case are that the assessee filed its return of income for the assessment year (AY) 2010-11 declaring total income of ₹ 5,60,36,119/-. The Assessing Officer (AO) completed assessment u/s 143(3) dated 26.03.2013 on a total income of ₹ 6,44,62,080/-. The issue in dispute in the instant case is the penalty levied by the AO, subsequently confirmed by the Ld. CIT(A) on the following additions /disallowances: (i) collection collected and credited to building fund of ₹ 7,23,140/-, (ii) disallowance of excess depreciation of ₹ 5,00,647/- and (iii) commission income accounted short of ₹ 97,129/-. 4. The Ld. counsel of the assessee begins with the 3rd ground of appeal. It is stated by him that in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under Section 271(1)(c) of the Act, for initiation of penalty proceedings will not warrant/permit penalty being imposed for the other breach. This is more so, as an Assessee would respond to the ground on which the penalty has been initiated/notice issued. It must, therefore, follow that the order imposing penalty has to be made only on the ground of which the penalty proceedings has been initiated, and it cannot be on a fresh ground of which the assessee has no notice. 5.1 Respectfully following the above decision of the Hon ble Bombay High Court, we delete the penalty u/s 271(1)(c) confirmed by the Ld. CIT(A). 6. In the result, the appeal is allowed. Order pronounced in the open Court on 25/03/2019 - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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