2013 (7) TMI 137

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....penalty u/s 271(1)(c) rightly levied by the AO. ii) Deleting the penalty levied u/s 271(1)(c) ignoring the fact that the case of the assessee was picked up for scrutiny u/s 147 by the AO after conducting the inquiry u/s 133(6). iii) Deleting the penalty levied u/s 271(1)(c) ignoring the fact that the addition was made by the AO after establishing that the assessee has concealed the particulars of income under ESOP. The appellant craves the right to alter, amend add or substitute the grounds of appeal." 2. Brief facts giving rise to this appeal are that the assessment was completed u/s 144/143(3) of the Income Tax Act, 1961 (for short the Act) on 24.12.2009 at total taxable income of Rs.12,31,490 against nil returned income. Duri....

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....enalty u/s 271(1)(b) or 271(1)( c) or while passing the quantum order u/s 144 of the Income Tax. From the assessment record. it is found that the letters submitted by speed post dated 17/04/2008, 17/09/2008, 23/07/2009 found unserved and returned back to AO. The addresses mentioned in the notices are 2/1103,325. Lokandwala. Complex. Andheri (West)- Mumbai-400053 . D-103. Regional Tower, . Nehru Park. Ahemdahad. whereas his address for the above period was Tiffany Building. 4th Floor, Hiranandani Estate, Thane (West) Maharashtra-400607. The appellant had not flied his Income tax returns for the above A.Y. 2005-06. with the belief that his CA Mr Nanavati has filed it. who had died in July 2005. All these collocations led to heavy penalty and ....

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....eturn, evidence and information available before the Assessing Officer during the assessment proceedings, it was noticed that under the share purchase agreement dated 06.04.2004, the assessee purchased shares from its employer and the assessee was found to have sold the said 7819 shares on 22.06.2004 and to have received consideration of Rs.12,31,492 during the year under consideration on sale of such shares. The DR further submitted that the assessee had not declared capital gain in the return filed on 13.02.2005, therefore, short term capital gain arising to the assessee on sale of shares was the subject of assessment. Hence, the Assessing Officer rightly held that the assessee had not furnished full and true particulars of its income and....

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.... observed that ex parte assessment proceedings led to heavy penalty on the appellant assessee and the Assessing Officer should have traced him in his Income tax return or telephone or email id through ex- employer. The Commissioner of Income Tax(A) further held that non- service of notice u/s 143(2) and 142(1) of the Act leads to annulment of assessment bad in law. In the last para of the order, the Commissioner of Income Tax(A) simply held that the case discussed in sufficient detail and the position of law on the subject, the Commissioner of Income Tax(A) held that the interpretation of the Assessing Officer on this account was incorrect and fallacious and the penalty was deleted. 8. In view of above, we observe that the Assessing Offi....