TMI Blog2021 (4) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... that the notice is absolutely vague and none of the irrelevant portions had been struck off nor the relevant portions had been marked or indicated. Hence, the Tribunal is right in observing that the penalty could not have been levied based on such defective notice and more particularly, when the assessee has been strenuously canvassing the jurisdictional issue from the inception. The decisions of the Karnataka High Court in the cases of Manjunatha Cotton and Ginning Factory [ 2013 (7) TMI 620 - KARNATAKA HIGH COURT] and SSA's Emerald Meadows [ 2015 (11) TMI 1620 - KARNATAKA HIGH COURT] and the decision of this Court in the case of Babuji Jacob [ 2020 (12) TMI 574 - MADRAS HIGH COURT] clearly support our above conclusion. For all th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under Section 274 read with Section 271AAB of the Act was not valid by quoting case laws related to Section 271(1)(c) of the IT Act, by ignoring the fact that no ambiguous provisions are present in Section 271AAB as available in Section 271(1)(c)? iii. Whether the Tribunal erred in not applying the provisions of Section 292BB to the penalty levied when the contents of the governing section namely Section 271AAB and the assessment order passed under Section 153A read with Section 143(3) discuss only undisclosed income of the assessee ? iv. Whether the Tribunal is right in ruling that the case of Manjunatha Cotton and Ginning Factory (KAR) to the facts of the case of the assessee, which are not identical? and v. Whether, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to what was the time granted to the assessee by the Assessing Officer to file his return of income pursuant to the notice dated 09.12.2013. 7. Be that as it may, the regular assessment under Section 143(3) of the Act was completed on 13.8.2014, in which, it has been mentioned that penalty proceedings under Section 271AAB of the Act would be initiated separately. Pursuant to that, a notice was issued to the assessee, for which, the assessee filed his objections. The first and foremost objection was that the notice was vague and that it did not specify as to under which limb of the said provision, the Assessing Officer proposed to take action. The assessee also touched upon the merits of the case and sought to demonstrate as to how the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sustain the order dated 03.2.2016 passed by the Assessing Officer. Ultimately, the Tribunal, by the impugned order, dismissed the appeal filed by the Revenue and allowed the cross objection filed by the assessee. Thus, the Revenue is before us by way of these appeals. 11. The argument of Mr.T.R.Senthilkumar, learned Senior Standing Counsel appearing for the Revenue is that the notice issued by the Assessing Officer while imposing penalty clearly stated that it was a notice issued under Section 274 read with Section 271AAB of the Act. Therefore, the assessee was aware that he had to face penalty proceedings initiated under Section 271AAB of the Act. That apart, the assessee submitted two replies and was also heard in person and thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty on the ground that the notice was defective. The provisions of the Act have clearly laid down the procedure to be followed and adhered to while imposing the penalty. The proposal for such penalty proceedings was separately initiated upon completion of assessment and there may be cases where the assessee would not even contest the order of assessment. But, that would not preclude the assessee from challenging the penalty proceedings, as penalty proceedings are independent and the procedure required to be followed cannot be dispensed with. 15. As rightly pointed out by the learned counsel appearing for the assessee, Section 271AAB of the Act, which deals with penalty consists of three contingencies. Therefore, the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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