TMI Blog2021 (10) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of penalty must be determined on the basis of the initiation of penalty proceedings. The defects being ex facie apparent in the notices issued, the initiation of proceedings being vitiated, the impugned order of the Tribunal confirming the order of the authorities cannot be sustained and is accordingly set aside. Decided in favour of the Assessee and against the Revenue. - I.T.A.No.530/2018 - - - Dated:- 8-9-2021 - HON BLE MRS.JUSTICE S. SUJATHA AND HON BLE MR. JUSTICE RAVI V. HOSMANI APPELLANT (BY SRI K. MALHARA RAO, ADV. FOR SRI S. PARTHASARATHI, ADV.) RESPONDENT (BY SRI K.V. ARAVIND, ADV.) J U D G M E N T S. SUJATHA, J., This appeal is filed by the assessee under Sec.260A of the Income Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MANJUNATHA COTTON AND GINNING FACTORY [(2013) 359 ITR 0565 (Karn.)], (ii) M/s SAFINA HOTELS PRIVATE LIMITED. v. COMMISSIONER OF INCOME TAX AND ANOTHER, [137 DTR 0089 (Karn.)] and (iii) S. CHANDRASHEKAR. v. ASST. COMMISSIONER OF INCOME TAX [(2017) 396 ITR 0538 (Karn.)], he submitted that the Appellate Tribunal failed to consider the judgments rendered by this Court in the right perspective. 5. Our attention was drawn to the notices issued under Section 274 read with 271 of the said Act of 1961 (Annexures-D and D1) to contend that the same are not in conformity with law and are vitiated as per the law laid down by this Court in the judgments cited supra. Learned counsel further argued that sufficient material was availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny said grounds mentioned therein and then penalty proceedings is initiated, in the notice to be issued under Section 274, they could conveniently refer to the said order which contains the satisfaction of the authority which has passed the order. However, if the existence of the conditions could not be discerned from the said order and if it is a case of relying on deeming provision contained in Explanation-1 or in Explanation-1(B), then though penalty proceedings are in the nature of civil liability, in fact, it is penal in nature. In either event, the person who is accused of the conditions mentioned in Section 271 should be made known about the grounds on which they intend imposing penalty on him as the Section 274 makes it clear that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to the information, facts and materials in the hands of the authority imposing the penalty at the time the order was passed and further discovery of facts subsequent to the imposition of penalty cannot validate the order of penalty which, when passed, was not sustainable. 9. The validity of the order of penalty must be determined on the basis of the initiation of penalty proceedings. The defects being ex facie apparent in the notices issued, the initiation of proceedings being vitiated, the impugned order of the Tribunal confirming the order of the authorities cannot be sustained and is accordingly set aside. The substantial questions are answered in favour of the Assessee and against the Revenue. 10. In the result, the appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
