TMI Blog2021 (5) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... Turning to the facts of the extant cases, we find from the notices u/s 274 of the Act that the AO did not strike out the irrelevant limb there from - Decided in favour of assessee. - ITA No.538 & 539/PUN/2018 - - - Dated:- 18-5-2021 - Shri R.S. Syal, Vice President And Shri S.S.Viswanethra Ravi, Judicial Member For the Assessee : Shri Kishor Phadke For the Revenue : Shri Mahadevan A.M. Krishanan ORDER PER R.S.SYAL, VP : These two appeals by the assessee arise out of the separate orders dated 30-08-2017 13-09-2017 confirming penalty of ₹ 81,950/- in relation to the assessment year 2009-10 and ₹ 29,50,876/- in relation to the assessment year 2011-12 u/s.271(1)(c) of the Income-tax Act, 1961 (herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Pune erred in law and on facts in confirming penalty u/s.271(1)(c) of the ITA, 1961 levied by the learned AO, without appreciating that, the notice u/s.274 r.w.s.271(1)(c) dated 25/03/2014, refers to both the limbs of section 271(1)(c) of the ITA, 1961. 5. The Hon ble Supreme Court in National Thermal Power Company Ltd. Vs. CIT (1998) 229 ITR 383 (SC) has observed that the purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribunal, it is found that a non-taxable item is taxed or a permissible deduction is denied, we do not see any reason wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 23- 07-2014 both for the year under consideration. In both the notices, the AO has not struck off either of the limbs and both the limbs are present. As against that, again the point is that the addition is because of the denial of status of agricultural income claimed by the assessee. The penalty, if any, on this score could have been imposed under the second limb, namely, furnishing of inaccurate particulars of income . It is evident that for both the years under consideration that the AO did not mention correct charge in the notices u/s 274 of the Act. He allowed to remain present both the charges envisaged u/s 271(1)(c) in his notices u/s 274 of the Act. Recently, the full Bench of Hon ble Bombay High Court in Mohd. Farhan A. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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