9911796707
TMI Blog2024 (7) TMI 1333X X X X Extracts X X X X X X X X Extracts X X X X ..... einafter referred to as "Act"] for the Assessment year [A.Y.] 2014-15, wherein the penalty of Rs. 1,52,084/- has been imposed upon the appellant assessee vide order dated 27.09.2022 passed by assessing officer u/s. 271(1)(C) of the Act. 2. The brief facts related to the appeal state that the appellant is a non resident Indian, settled in Dubai, UAE since the year 1978. During the assessment year A.Y.2014-15, the only source of appellant's income was interest on investments. Appellant did not file her return of income for A.Y.2014-15 as per the provisions of Section 139 of the Act. The Appellant's case was selected for scrutiny u/s. 147 of the Act. It was noted that the assessee had entered into transactions relating to TDS Return (Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law that the penalty proceeding initiated without specifying the particular limb of the proceedings is bad in law. 3. a) On the facts and circumstances of the case and in law, the AO wrongly issued the notice u/s. 271(1)(c) of the Act though no proceedings have been initiated in the assessment order. The AO is required to initiate the penalty proceedings in the assessment order. b) The AO erred in issuing notice u/s. 271(1)(c) on 30/03/2022 i.e. after the assessment order passed on 03.03.2022. 4. a) On the facts and circumstances of the case and in law, the assessment order passed u/s. 147 is bad in law since order dated 03/03/2022 is digitally signed on 30/03/2022 and DIN was taken on unsigned order. It is not clear as to the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian and did not file the return of income for the assessment year 2014-15. It is only in response to the notice dated 30.03.2021 issued u/s. 148 of the Act, the assessee filed her return of income on 24.04.2021, declaring her total income at Rs. 60,83,333/-. The same was accepted by the Assessing Officer vide assessment order dated 03.03.2022 (digitally signed on 30.03.2022). It is noted that the assessment order does not even whisper with regard to any direction for initiating penalty proceedings u/s. 271(1)(C) of the Act. 8. The statutory provisions under the Act, relevant to the case under consideration, read as under: Section 115G "115G. It shall not be necessary for a non-resident Indian to furnish under sub-section (1) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall not be less than, but which shall not exceed [three times], the amount of tax sought to be evaded by reason of the concealment of particulars of his income [or fringe benefits] or the furnishing of inaccurate particulars of such income for fringe benefits]. [*]]................................................................................." Section 271(1B) "[(1B) Where any amount is added or disallowed in computing the total income or loss of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under clause (c) of sub-section (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the Assessing Officer for init ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er does neither contain any direction nor any satisfaction of the Assessing Officer for initiation of the penalty proceedings u/s. 271(1)(C) of the Act. The instant case is neither a case of concealment of income nor a case of furnishing of inaccurate particulars of income as the income declared by the assessee was accepted by the revenue. The submissions of the assessee, that she was under a bonafide belief that the tax at source was deducted properly and no additional tax was payable by her, being based on her legitimate expectation, deserves to be accepted. The penalty proceedings cannot thus be sustained under the law. The aforesaid point is thus determined in favour of the assessee and against the revenue. 11. In the result, the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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