TaxTMI 
TaxTMI 
2019 (3) TMI 92
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....the aforesaid appeal, sought to set aside the impugned order dated 16/10/2015 passed by Ld. Commissioner of Income Tax(Appeals)-17, New Delhi qua the Assessment Year 2008-09 on the grounds inter alia that : "1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in reducing the addition made by the AO on account of bogus purchases of Rs. 66,17,470/- to 20% of such purchase. 2. On the fact and in the circumstances of the case, the Ld. CIT(A) has erred in reducing the addition of the account of bogus purchases to 20% of the addition without any cogent reasons there for." ITA no. 14/Del/2016 3. The appellant Income Tax Officer, New Delhi (hereinafter referred to as 'the revenue') by filin....
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....o produce the original confirmation from these two parties during the remand proceeding as the confirmation filed before the AO was not legible. It is also not in dispute that the assessee has claimed that the payments were made in the subsequent years. 8. In the backdrop of the aforesaid facts and circumstances of the case when we examine para 5 of the impugned order passed by Ld. CIT(A) it is categorically recorded therein, " that the assessee was asked by AO to produce evidence in support of genuineness of both the creditors, however, no confirmation or any subsequent documents to substantiate genuineness of the creditors were furnished ; that even no detail with regard to the payment made to those creditors even in the subsequent yea....
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....s 143(3) AO initiated the penalty proceedings u/s 271(1)(c) of the Act. Declining the contentions raised by the assessee, AO levied the penalty of Rs. 20,44,881/- @ 100% for concealment of income of Rs. 66,17,740/- on the ground that the assessee has concealed his particulars of income / furnished inaccurate particulars of income to evade the tax on concealed income. 11. Assessee carried the matter before Ld. CIT(A) by filing the appeal who has confirmed the penalty levied by AO by dismissing the appeal. 12. We have heard the Ld. DR for the revenue gone through the order passed by lower revenue authorities and documents brought on record. 13. Undisputedly assessee company has claimed to have made purchases from M/s. Deepa Enterpris....
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....nalty for concealing the particulars of income or for furnishing inaccurate particulars of income rather proceeded to pass the following orders :- "Considering the above facts, I am satisfied that the assessee has concealed his particulars of income/furnished inaccurate particulars of income and has attempted to evade tax on such concealed income as per Section 271(1)(c) read with Explanation I thereto. Penalty imposable u/s 271(1)(c) read with Explanation I thereto on the amount of tax sought to be evaded is worked out as under :- Income declared by the assessee Rs. 43,920/- Amount of income concealed Rs. 66,17,740/- Tax sought to be evaded on concealed income Rs. 20,44,881/- Minimum penalty imposable @ 100% ....
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....n 271. e) The existence of such conditions should be discernible from the Assessment Order or order of the Appellate Authority or Revisional Authority. f) Ever if there is no specific finding regarding the existence of the conditions mentioned in Section 271(1)(c), at least the facts set out in Explanation 1(A) & (B) it should be discernible from the said order which would by a legal fiction constitute concealment because of deeming provision. g) Even if these conditions do not exist in the assessment order passed, at least, a direction to initiate proceedings under Section 271(l)(c) is a sine qua non for the Assessment Officer to initiate the proceedings because of the deeming provision contained in Section 1(B).....
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....essing Officer has not recorded any satisfaction or has not issued any direction to initiate penalty proceedings, in appeal, if the appellate authority records satisfaction, then the penalty proceedings have to be initiated by the appellate authority and not the Assessing Authority. p) Notice under Section 274 of the Act should specifically state the grounds mentioned in Section 271(1)(c), i.e., whether it is for concealment of income or for furnishing of incorrect particulars of income q) Sending printed form where all the ground mentioned in Section 271 are mentioned would not satisfy requirement of law. r) The assessee should know the grounds which he has to meet specifically. Otherwise, principles of natural justice is....