TMI Blog2020 (7) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty on the other limb of the alleged offence. By this, the penalty levied for three assessment years is deleted. - Decided in favour of assessee. - ITA No.4619/Mum/2018, ITA No.4620/Mum/2018, ITA No.4621/Mum/2018, ITA No.4622/Mum/2018, ITA No.4623/Mum/2018, ITA No.4624/Mum/2018 And ITA No.4625/Mum/2018 - - - Dated:- 13-7-2020 - Shri C.N, Prasad, JM And Shri M. Balaganesh, AM For the Assessee : Shri V. Chandrashekhar, Advocate For the Revenue : Ms. Samadha Mullamudi, Sr AR ORDER PER BENCH: These appeals in ITA No.4619/Mum/2018, ITA No.4620/Mum/2018, ITA No.4621/Mum/2018, ITA No.4622/Mum/2018, 4623/Mum/2018 4624/Mum/2018 4625/Mum/2018 for A.Y.2001-02,2002-03,2003-04,2004-05, 2005-06, 2006-07 2007-08 respectively arise out of the order by the ld. Commissioner of Income Tax (Appeals)-48, Mumbai in appeal Nos. CIT(A)-48/I.T-42,44 48/DC CC2(3)/2017-18, CIT(A)-48/I.T-43,45,46 47/DC CC2(3)/2017-18 dated 14/06/2018, 31/05/2018 (ld. CIT(A) in short) in the matter of imposition of penalty u/s.271(1)(c) r.w.s. 274 271(1)(c) respectively of the Income Tax Act, 1961. Also include the details of Asst Year 2007-08. 2. At the outset, the ld. AR submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action of Shares Total 4619 2001-02 311,899 167,407 479,306 4620 2002-03 320,484 NA 320,484 4621 2003-04 331,193 16,322 347,515 4622 2004-05 304,040 NA 304,040 4623 2005-06 310,361 NA 310,361 4624 2006-07 161,058 NA 161,058 4625 2007-08 Nil 119,610 119,610 Total 17,39,035 3,03,339 20,42,374 3.1. From the above table read together with the provisions of Explanation-5 Clause-2 of Section 271(1)(c) of the Act, it could be safely concluded that no penalty could at all be levied in the total sums of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Addition made towards unexplained cash expenditure - ₹ 24,248/- Total ₹ 14,52,219/- 3.6. We find that the ld. AO in page 3 in para 8 of his penalty order dated 31/07/2017 had mentioned in bold letters by supplying more emphasis thereon that the aforesaid three items would constitute undisclosed income of the assessee eligible for levy of penalty for furnishing inaccurate particulars of income (underlining and emphasis provided by us). 3.7. But we find that the ld. AO in para 12 of his penalty order had mentioned that the penalty is levied for both concealment of income as well as furnishing of inaccurate particulars of income by the assessee and accordingly, levied penalty of ₹ 4,79,306/- for the A.Y.2001-02. The break-up of the said penalty is as under:- Penalty for income disclosed in the return filed u/s.153A of the Act - ₹ 3,11,899/- Penalty for additions made in the 153A assessment - ₹ 1,67,407/- Total ₹ 4,79,306/- 3.8. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon ble Bombay High Court in Ventura Textiles case in ITA No.958/2017 dated 12/06/2020 by drawing specific reference to para 26 of the said decision thereon. The main crux of the said decision is that the Hon ble Bombay High Court had held that even if the penalty notice does not mention the specific charge of offence committed by the assessee, if the ld. AO has duly recorded his satisfaction in the quantum assessment order itself, the assessee is completely made aware of the offence committed by him and also the mind of the ld. AO. Subsequently, if the penalty is levied by the ld. AO on the very same limb for which satisfaction was recorded in the quantum assessment order, then the penalty levied would be sustainable in the eyes of law and cannot be struck down merely because there is a defect in the penalty notice. In other words, the Hon ble Bombay High Court had observed that in the case of Ventura Textiles, the assessee was duly informed about the specific limb on which penalty is initiated by way of proper satisfaction recorded in the quantum assessment order. We find that this decision of Hon ble Bombay High Court in the case of Ventura Textiles cannot be made applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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