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TMI Blog2025 (2) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... s and grounds, therefore, with the consent of parties, these appeals are clubbed and heard together and being decided by this consolidated order. For appreciation of facts, we take ITA No. 84/Ran/2022 for A.Y. 2012-13 as a lead case. In this appeal, the assessee has raised following grounds of appeal: "1. That under the facts and circumstances of the case, no penalty u/s 271(1)(c) should had been levied, hence, the impugned order levying penalty of Rs. 89,46,176/- needs to be quashed. 2. That the very initiation of penalty is bad in law as the Ld. AO has failed to record a proper or transparent satisfaction in his notice while initiating proceedings under section 271(1)(c), thus rendering the entire penalty proceedings null and void. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing the precedence of the predecessor CIT(A) as also in not following the directions of the jurisdictional Tribunal as well as the Hon'ble Supreme Court of India. 6. The facts of the case are that a search operation was conducted under Section 132(1) of the Income tax Act, 1961 (in short, the Act) in this case on 17.08.2017 during which the assessee offered undisclosed income in the statement recorded u/s 132(4) of the Act and paid the due taxes while filing return in response to notice u/s 153A. The assessee admitted the allegation of the AO regarding certain manipulation in the transaction of shares to earn long term capital gains to buy peace and the return of income was also accepted by the AO. Subsequently, notice u/s 274 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income or for furnishing of incorrect particulars of income. The assessee has placed reliance on various case laws in support of the contention that if certain show cause notice of penalty in printed form was issued u/s 274 without pointing the relevant default, initiation of penalty proceedings on one limb while finding the assessee guilty in another limb is bad in law as held in the case of CIT & Anr. vs. Manjunatha Cotton & Ginning Factory 359 ITR 565 (Kar.) It is further contended the Hon'ble Supreme Court in the case of in SSA's Emeralds Meadows vs. CIT 242 taxmann 180 on similar facts has held there was no substantial question of law and dismissed the SLP of the Department with regard to the above penalty proceedings. 9. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty even though the AO had properly recorded the satisfaction for imposition of penalty in his order u/s143 (3) of the Act. In another judgment, the Hon'ble Bombay High Court in Pr. CIT vs. Golden Peace Hotels and Resorts (P) Ltd. (2021) 124 taxmann.com 248 (Bom.) also took similar view that where the portions which are inapplicable in the penalty notice were not struck off, the penalty was vitiated. SLP of the Department against this judgment has been dismissed by the Hon'ble Supreme Court in Pr. CIT vs. Golden Peace Hotels and Resorts (P) Ltd. (2021) 124 taxmann.com 249 (S.C). 5. The Hon'ble Karnataka High Court in SSA Emeralds Meadows vs. CIT 242 taxmann 180 also echoed the view that if the charge of penalty is not spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A) and direct the AO to delete the penalty from the hands of the assessee for the years hereinabove enumerated in the cause title." 11. Since the issue in hand which basically hinges on the alleged defective show cause notice issued in terms of section 274 of the Act, is exactly similar, following this Bench's decision in the case of Raj Kumar Agrawal(supra),we, therefore, set aside the penalty order and direct the AO to delete the penalty imposed on the assessee. 12. In the result, this appeal filed by the assessee is allowed. 13. Now we shall take ITA No.85 & 86/Ran/2022 for the A.Y. 2013-14 and 2014- 15. We find that in these appeals, the assessee has raised similar grounds of appeal. We also find that in these appeals, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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