TMI Blog2021 (1) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... Infrastructure Ltd wherein penalty u/s 271AAA of the Act was deleted by this Tribunal. So is the notice being defective and not in accordance with law has been issued in the case of assessee for Assessment Year 2011-12 and 2012-13 the penalty proceedings u/s 271AAA are held to be void ab initio. We accordingly delete the penalty levied u/s 271AAA. Excess claim of depreciation - Firstly the excess depreciation claimed pertains to the specified year under consideration, secondly the alleged undisclosed income in the form of excess depreciation was admitted during the course of search, thirdly assessee has substantiated the manner in which income has been derived and lastly as regards the demand of tax the same is not applicable since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act at Keti-Kalyan Group. Ld. Counsel for the assessee further submitted that the issue raised in these appeals is squarely covered in favour of the assessee and the impugned penalty is liable to be deleted in view of the decision of Hon'ble I.T.A.T. Indore in one of the group case of the assessee namely DCIT V/s Kalyan Toll Infrastructure Limited DCIT V/s Kalyan-Keti Toll Pvt. Ltd in ITA Nos.928 929/Ind/2019 dated 28.9.2020. He further submitted that in the instant case also defective notice was issued without specifying the charge to be leveled against the assessee u/s 271AAA of the Act and on the merits also the issue is covered in favour of the assessee. 4. Ld. Departmental Representative though supported the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome with you were required to furnish by a notice given under section 22(1)/22(2}/34 of the India Income Tax Act, 1922 or which you were required to furnish under section 139)1} or by a notice given under section 139(2)/148 of the Income Tax Act 1961, No dated or have without reasonable cause failed to furnish it within the allowed and the manner required by the side section 139(1) or by such notice. *Have without reasonable cause failed to comply with a notice under section 22(4)/23{2} of the India Income Tax Act, 1922 or under section 142(1)/143(2) of the Income Tax Act1961. No. dated have concealed the particulars of your Income or furnished inaccurate particulars of such Income. You are hereby requested to appear before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We find that this issue is also squarely covered in favour of the assessee by the decision of Hon'ble Coordinate Chandigarh Bench in the case of Gillco Developers Builders (P) Ltd (supra) wherein the Tribunal after observing that the notice issued is defective held in favour of the assessee and quashed the penalty proceedings observing as follows:- 19. Now coming to the legal issues raised by the assessee, the Ld. Counsel for the assessee has contended that even the notice served upon the assessee u/s 274 of the Act is also invalid. We have gone through the show cause notice issued to the assessee. The Ld. Counsel for the assessee has invited our attention to the letter / notice issued u/s 274 read with section 271AAA of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded to initiate penalty proceedings u/s 271AAA(1) of the Act, however, the wording written in the body of the letter does not conform to the charges of the provisions of section 271AAA of the Act, rather, the assessee has been show caused on the charge of furnishing of inaccurate particulars of income, which falls under the scope and purview of section 271(1)(c) of the Act. The assessee, therefore, is not show caused for levy of penalty under the provisions of section 271AAA, rather for doing an act inviting penalty u/s 271(1)(c) of the Act, which otherwise is neither arising out of the facts of the case nor established against the assessee. Thus, the penalty proceedings conducted against the assessee u/s 271AAA of the Act were invalid at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or withdrawal of excess claim of depreciation during the course of assessment proceedings, we find that after being subjected to the search proceedings u/s 132 of the Act on 05.05.2011, the appellant surrendered the claim of excess depreciation during the course of assessment proceedings. The manner of surrender of depreciation claim was explained during the search proceedings and the same was accepted by Ld. A.O. The assessment order was passed disallowing the depreciation surrendered by the appellant. Demand notice u/s 156 of the Act pursuant to order u/s 153A of the Act was passed with NIL demand. The quantum order was accepted and no further appeal was preferred. Immunity from levy of penalty on undisclosed income of specified previous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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