TMI Blog2021 (7) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... relying on ANANTA GOPAL KARAT case [ 2019 (4) TMI 1992 - ORISSA HIGH COURT] the entire penalty proceedings are vitiated and are liable to be quashed. - Decided in favour of assessee. - ITA No. 25/CTK/2021 - - - Dated:- 23-7-2021 - Shri Chandra Mohan Garg, Judicial Member For the Assessee : Shri Mohit Sheth, AR For the Revenue : Shri Sovesh Chandra Mohanty, Addl. CIT (DR) ORDER This is an appeal filed by the assessee against the order of the CIT(A), Cuttack dated 25.1.2019 for the assessment year 2012-13. 2. The only grievance of the assessee in this appeal is that the id CIT(A) erred in confirming the penalty of ₹ 9,27,000/- under section 271(1)(c) of the Act. 3. Fact of the case are that the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r levied penalty of ₹ 9,27,000/- being 100% of tax sought to be evaded. 4. The assessee carried the matter in appeal before the ld CIT(A) but without any success. 5. Ld Counsel for the Assessee submitted that since the A.O. in the show cause notice dated 31ST March, 2015 issued before levy of the penalty have mentioned both the limbs of Section 271(1)(c) of the I.T. Act for levy of the penalty, therefore, the show cause notice is invalid, bad in Law and defective and as such entire penalty proceedings are vitiated and are liable to be quashed on this reason alone. Ld A.R. relied on the decision of Hon ble Karnataka High Court in the case of CIT vs Manjunatha Cotton Ginning Factory, 359 ITR 565 (Kar) and also the decision of Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that since the AO has not specified on which limbs, the penalty is leviable, in view of the decision of the Hon ble Karnataka High Court in the case of CIT vs Manjunatha Cotton Ginning Factory, 359 ITR 565 (2013). Ld A,R relied on the decision of Hon ble Supreme Court in the case of CIT vs. M/s. SSAs Emerald Meadows, 73 taxmann.com 248 (SC) has held that omission by the AO to explicitly specified in the penalty notice as to whether penalty proceedings are being initiated for furnishing of inaccurate particulars or for concealment of income makes the penalty order liable for cancellation. Further, the Hon ble Delhi High court in the case of Pr. CIT vs. M/s. Sahara India Life Insurance Company Ltd., 2019-(8)-TMI-409-(Del.) vide J ..... X X X X Extracts X X X X X X X X Extracts X X X X
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