TMI Blog2020 (5) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged concealment and / or furnishing of inaccurate particulars of income. Similarly, in the penalty order passed u/s. 271(1)(c) the Dy. Commissioner of Income Tax, Circle-1, Ghaziabad has mentioned that it is a case of deliberate concealment of income by furnishing inaccurate particulars. Therefore, penalty u/s. 271(1)(c) is clearly attracted in this case which is not sufficient to levy the penalty in dispute. Therefore, the entire penalty proceedings stand vitiated, because it is not in accordance with law, in view of the law settled in case CIT Anr. Vs. M/s SSA s Emerald Meadows [ 2015 (11) TMI 1620 Karnataka High Court ] - Decided in favour of assessee. - I.T.A. No. 4738/DEL/2016 - - - Dated:- 5-5-2020 - Shri H.S. Sid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is for concealment or for inaccurate particulars of income. It was further submitted that the assessee company received money through cheques which were accounted in banks account of the company and the nature and source of deposits with the company stood proved on the facts of the case. The source of deposits was proved and substantiated, thus there is no concealment of income by the assessee. It was further submitted that the penalty proceedings are distinct and separate from assessment proceedings. There is no infirmity hence there is no furnishing of inaccurate particulars of income by the assessee. In the last, it was submitted that in the order there is no direction u/s. 271(1) for levy of penalty. Thus levy of penalty is illeg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) Sundaram Finance Ltd. vs. CIT (2018) 93 taxmann.com 250 (Madras) (2018) 403 ITR 407 (Madras) iv) CIT vs. Smt. Kaushalya (1994) 75 Taxman 549 (Bombay) [1995] 216 ITR 660 (Bombay). v) Trimurti Engineering Works vs. ITO (2012) 25 taxmann.com 363 (Delhi/ [2012] 138 ITD 189 (Delhi) [2012] 150 TTJ 195 (Delhi) Where ITAT, Delhi held that it was apparent from combined reading of notice and assessment order that impugned notice had been issued in respect of concealment of particulars of income. vi) Hybrid Rice International Pvt. Ltd. vs. CIT (ITA No. 285/Del/2007). Where ITAT, Delhi held that it was apparent from combined reading of notice and assessment order that impugned notice had been issued in respect of concealment of parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) is clearly attracted in this case , which is not sufficient to levy the penalty in dispute. Therefore, the entire penalty proceedings stand vitiated, because it is not in accordance with law, in view of the law settled in the following case laws. i) CIT Anr. Vs. M/s SSA s Emerald Meadows 2015 (11) TMI 1620 Karnataka High Court has held that Tribunal has correctly allowed the appeal filed by the assessee holding the notice issued by the Assessing Officer under section 274 read with Section 271(1)(c) to be bad in law as it did not specify which limb of Section 271(1) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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