TaxTMI 
TaxTMI 
2018 (5) TMI 960
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....or the sake of convenience, the facts are borrowed from I.T.A.No.11 of 2018. 2. These appeals under Section 260-A of the Income Tax Act, 1961 (hereinafter referred as 'the Act of 1961'), have been filed against the order dated 11.8.2017, passed by the Income Tax Appellate Tribunal, Bench Indore in ITA.No.414/Ind/2012 (Assessee's Appeal for the assessment year 2002-03), ITA.No.416/Ind/2012 (Assessee's Appeal for the assessment year 2004-05), ITA No.415/Ind/2012 (Assessee's Appeal for the assessment year 2003-04), ITA No.419/Ind/2012 (Assessee's Appeal for the assessment year 2007-08), ITA No.417/Ind/2012 (Assessee's Appeal for the assessment year 2005-06) and ITA No.418/Ind/2012 (Assessee's Appeal for the a....
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....essing Officer initiated penalty proceedings under Section 271(1)(c) of the Act of 1961. The Assessing Officer held that after insertion of Explanation 5A of Section 271(1)(c) w.e.f. 1.6.2007, the legal position is very clear and penalty for concealed income held to be levied. Since, the assessee has declared undisclosed income only after the date of search and levied a penalty of Rs. 2,48,090/- being minimum penalty at the rate of Rs. 100% of the concealed income of Rs. 9,28,400/- vide order dated 29.6.2010. 4. Being aggrieved with the penalty, the assesse filed an appeal before the Commissioner of Income Tax (Appeals), Indore. The learned Appellate Authority has passed an order confirming the penalty levied by the Assessing Officer on ....
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....n the decision of the Apex Court in the case of National Thermal Power Co. Ltd. V/s. CIT, (1998) 229 ITR 383 (SC) permitted the assessee to raise the additional ground as there is pure question of law and no further inquiry or investigation on facts is required. It was submitted before the Tribunal that the income shown in the return were offered under Section 132 (4) as well as returns filed under Section 153A. These incomes have been accepted in the assessment order without any variation and objection. The blanket penalty proceedings were initiated in all cases under Section 271(1)(c). The penalty notice under Section 274 read with Section 271(1)(c) were issued in the typed format without striking off either of two charges, i.e., which is....
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....at penalty proceedings are initiated under Section 271(1)(c) and under Section 271(AAA). 8. In the case of CIT V/s. Manjunatha Cotton Ginning Factory (supra), it was observed by the Karnataka High Court in para 59 that the practice of the Department sending a printed form where all the ground mentioned in Section 271 are mentioned would not satisfy the requirement of law when the consequences of the assessee not rebutting the initiated presumption is serious in nature and he had to pay penalty from 100% to 300% of the tax liability. As the provisions have to be held to be strictly construed, notices issued under Section 274 should satisfy the grounds, which he has to meet specifically. Otherwise, principle of natural justice is offended ....
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.... 251 ITR 9 (SC) , the Apex Court has upheld the decision of M.P. High Court wherein, in similar circumstances, it was held that the initial burden lies on the revenue to establish that the assessee had concealed the income or had furnished inaccurate particulars of such income. In the present case, in show-cause notice the Assessing Officer has not specified specifically charges, there was no such mention. 9. Considering the aforesaid, the Tribunal has held that the penalty levied under Section 271(1)(c) of the Act of 1961 is not sustainable in law, as no specific charge was levied in penalty show-cause notices and allowed the appeal No.ITA (Appeal) 414/Ind/2012 and other five appeals. 10. It is submitted that the provision of Section....