9911796707
TMI Blog2025 (5) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... 08, 2009-2010 and 2011-2012. Therefore, the same are being disposed off by way of a common order. 2. When the appeals/cross-objections were taken up for hearing none was present on behalf of the Assessee. We have heard the Learned Departmental Representative and have perused the material on record including the orders is passed by authorities below and documents/orders furnished by the Learned Departmental Representative vide Letter, dated 03/03/2025, in compliance with the directions issued by this Tribunal. 3. On perusal of material on record following facts emerge: 3.1. The Assessee in the present case is the daughter of Mr. Jaswant Singh Yashpal [hereinafter referred to as 'JSY'] and Mrs. Blodwen Yashpal. JSY was Person of Indian origin having British nationality. JSY worked as a pilot/flight engineer with the airlines outside India. After working with Kuwait Airlines for more than 25 years, JSY retired in the year 1993 and decided to live in United Kingdom before returning to India in the year 2001. JSY expired on 28/06/2017. 3.2. Mrs. Blodwen Yashpal [hereinafter referred to as 'BSY'] is a British national was married to JSY. She was a housewife having no source of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) granted relief to the Assessee by deleting the penalty levied. 3.8. Being aggrieved by the above relief granted by the CIT(A), the Revenue has preferred the present appeals before this Tribunal. The Assessee has filed Cross-objections supporting the order passed by the CIT(A). 3.9. Identical grounds have been raised by the Revenue in all the appeals and the same reads as under: "1. Whether in facts and circumstances of this case the Ld. CIT(A) has erred in allowing the appeal of the assessee without appreciating the fact that the assessee has not submitted any corroborating evidence in support of her contention which can bring out the true nature of the deposits made in the Foreign Bank Account. 2. Whether in facts and circumstances of this case the Ld. CIT(A) has erred in acknowledging the fact that the AO has passed a speaking order based on facts and documents furnished by the assessee, whereas the Ld. CIT(A) is of view that the assessment done is protective in nature. 3. Whether in facts and circumstances of this case the Id. CIT(A) has erred in relying upon the judgment of Hon'ble Supreme Court of India in case of Lalji Haridas vs ITO, Supreme Court, 1961 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Year 2002-2003 under Section 143(3) read with Section 147 of the Act at assessed income of INR. 3,68,686/- by making addition of interest income of INR. 3,54,910/- reflected in Foreign Bank Account and interest income of INR. 13,776/- in respect of interest income from Standard Chartered Bank, Fort, Mumbai. Penalty proceeding under Section 271(1)(c) of the Act were initiated and penalty of INR. 2,58,900/- was levied under Section 271(1)(c) of the Act. The said penalty was deleted by the CIT(A) vide order dated 11/07/2024, impugned by way of present appeal by the Revenue. 5. On perusal of material on record, we find that while passing the Assessment Order dated 30/05/2015 under Section 143(3) read with Section 147 of the Act, the Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Act after recording as under: "6.3. The statement of the aforesaid HSBC Bank account during the assessment year 2002-03 shows the following transactions: xx ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not permissible. There cannot be any initiation of the penalty proceedings with respect to the protective assessment order. The aforesaid is supported by the decision of this Court in the case of Bankim J. Shah (Supra). In the said case also penalty was sought to be levied under Section 271(1) of the Act on the protective assessment and to that it is held that there cannot be any protective initiation of the penalty proceedings. It is further observed and held that in a given case a particular income belong to A or B and although the Income Tax Officer reaches to the conclusion that the said income belongs to one of them, he may make protective assessment on the other hearing regard to the fact that the matter was likely to be carried in appeal. It is observed that such a protective assessment may be permissible under the law but there cannot be protective initiation of the penalty proceedings. It is further observed that as such the basis or foundation for initiation of the penalty proceedings is the requisite satisfaction as provided in Section 271(1) of the Act and as such satisfaction could not be reached when the Income Tax Officer himself believes that the income for which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent case the Revenue has not disputed the position that the income of INR. 3,54,910/- was taxed in the hands of the father of the Assessee (JSY) and that penalty under Section 271(1)(c) of the Act has also been levied in respect of the same. Therefore, in the facts and circumstances of the present case penalty levied under Section 271(1)(c) of the Act in respect of interest income of INR. 3,54,910/- pertaining to the Foreign Bank Account [added in hands of the Assessee on a protective basis] could not have been sustained and was, therefore, rightly deleted by the CIT(A). 12. As regards, interest income of INR. 13,776/-, being interest income from Standard Chartered Bank, Fort, Mumbai, is concerned we find that no finding has been returned by the CIT(A). However, we have already noted that the Revenue has disputed that the above interest income of INR. 3,54,910/- has been brought to tax in the hands of the father of the Assessee. In case the same is excluded, the interest income of INR. 13,776/- would fall below that taxable limit leading to no adverse tax impact. Therefore, the question of levy of penalty under Section 271(1)(c) of the Act would not arise. 13. In view of above, ..... 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